Marvell Technology shares fell 6% on Friday following the release of its second-quarter financial results and updated guidance. The chipmaker reported revenue of $2.7 billion for the quarter, representing a 37% year-over-year increase and surpassing its prior guidance by $39 million. The company also raised its fiscal 2028 revenue outlook to approximately $18 billion, reflecting expected year-on-year growth of about 50% and exceeding its previous forecast of $16.5 billion.
Despite these positive results, the stock’s decline reflected investor disappointment with the outlook’s scope. Market observers attributed the elevated expectations to robust spending signals from key customers and the Google partnership announcement made the previous week. Goldman Sachs analysts noted that investor sentiment heading into the quarter had been bolstered by reports of strong demand from major clients, combined with expectations around the newly disclosed Google relationship.
Marvell’s data center business demonstrated particular strength, with revenue growth accelerating to 46% year over year in that segment. The company’s leadership attributed the performance to sustained demand across its data center product portfolio. CEO Matt Murphy emphasized that artificial intelligence-related bookings remained exceptionally robust and indicated expectations for accelerated revenue growth through the remainder of fiscal 2027.
The Google partnership, revealed the previous week, allows the technology firm to purchase up to 58.97 million Marvell shares at $206.58 each, with purchase targets extending through fiscal 2033. The agreement encompasses products designed to integrate with Google’s TPU systems, including AI inference chips, storage controllers, and network interface controllers. Despite the partnership’s potential, Goldman Sachs maintained a neutral rating on the stock, citing higher relative valuations compared to peers and uncertainty regarding the company’s ability to acquire additional custom-chip customers.
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