Marvell Technology saw its stock price fall on Friday following the release of its second-quarter financial results and updated guidance for the coming fiscal year. The chipmaker reported revenue of $2.7 billion for the quarter, representing a 37% increase year-over-year and exceeding the company’s prior guidance by $39 million. Despite this performance, the stock traded down 6.6% as market participants assessed the company’s forward outlook.
The company raised its fiscal 2028 revenue forecast to approximately $18 billion, representing growth of about 50% year-over-year compared to its earlier projection of $16.5 billion. However, analysts noted that investors had entered the quarter with heightened expectations following recent developments, including a significant partnership announcement with Google. The chipmaker provided limited additional details regarding its fiscal 2028 outlook, which appeared to disappoint some market participants who anticipated more aggressive guidance given the Google relationship.
Marvell’s data center business, which represents a significant portion of its revenue, showed particular strength with 46% year-over-year growth. The company’s product portfolio includes networking, connectivity and custom chips used in artificial intelligence data centers. Company leadership attributed the results to sustained demand across the data center portfolio and noted that AI-related bookings remained robust, with management expecting continued revenue acceleration through the remainder of fiscal 2027.
The Google partnership, announced the previous week, involves an agreement where the technology company may purchase up to 58.97 million Marvell shares at $206.58 each, with targeted purchases extending through fiscal 2033. The arrangement covers products designed to work with Google’s TPU systems, encompassing AI inference chips, storage controllers and network interface controllers. Goldman Sachs maintained a neutral rating on the stock, noting that elevated investor expectations preceded the earnings release and that Marvell trades at a higher valuation compared to peers, with less certainty regarding the company’s ability to expand its customer base for custom chips.
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