Marvell Technology’s stock fell on Friday following the release of its second-quarter financial results and updated guidance, despite beating revenue expectations. The chipmaker reported fiscal second-quarter revenue of $2.7 billion, which exceeded its prior guidance by $39 million and represented 37% year-over-year growth.
The company raised its fiscal 2028 outlook, now projecting revenue will grow approximately 50% year-over-year to reach around $18 billion, up from its previous forecast of $16.5 billion. However, limited disclosure surrounding the fiscal 2028 outlook proved insufficient to satisfy investors who held elevated expectations entering the earnings release. The stock declined 6.6% in trading following the announcement, despite being up 184% for the year.
Marvell’s data center business demonstrated particular strength, with revenue in that segment accelerating to 46% year-over-year growth. Company leadership attributed the results to sustained robust demand across the data center portfolio and noted that AI-related bookings remained exceptionally strong, with expectations for accelerating revenue growth through the remainder of fiscal 2027.
The stock’s decline occurred despite a recently announced partnership with Google, announced the previous week, allowing the tech giant to purchase up to 58.97 million Marvell shares at $206.58 each through fiscal 2033. The agreement covers AI inference chips, storage controllers, and network interface controllers designed to work with Google’s TPU systems. Goldman Sachs analysts characterized the results as an “incremental positive” but maintained a neutral stance on the stock, citing higher valuations relative to peers and uncertainty surrounding the company’s ability to secure additional custom-chip customers.
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