Marvell Technology shares declined on Friday following the release of its second-quarter earnings results and updated financial guidance. While the chipmaker posted a revenue beat and raised its outlook, the market response was negative as investors had anticipated stronger guidance.
The company reported second-quarter revenue of $2.7 billion, representing 37% growth year-over-year and exceeding company guidance by $39 million. Management raised its fiscal 2028 revenue forecast to approximately $18 billion, up from a previous projection of $16.5 billion, representing anticipated growth of roughly 50% year-over-year. Data center revenue, a key segment for the company, accelerated to 46% year-over-year growth, driven by demand for networking, connectivity and custom chips used in AI data centers.
Chairman and Chief Executive Officer Matt Murphy attributed the results to robust demand across the company’s data center portfolio and noted that AI-related bookings remained exceptionally strong. The company projected further acceleration in revenue growth through the remainder of fiscal 2027.
A notable development involved a strategic partnership with Google announced the prior week. Under the agreement, Google holds the right to purchase up to 58.97 million Marvell shares at $206.58 each, with purchase targets extending through fiscal 2033. The partnership covers products designed to integrate with Google’s TPU systems, including AI inference chips, storage controllers and network interface controllers.
Analysts at Goldman Sachs characterized the results as incrementally positive but noted that investor expectations heading into the quarter had been elevated based on robust spending from key customers and the disclosed Google relationship. The investment bank maintained a neutral rating on the stock, citing its higher valuation relative to peers and uncertainty surrounding the company’s ability to expand its custom-chip customer base. The stock was trading down 6.6% and had gained 184% year-to-date prior to the decline.
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