Marvell Technology experienced a stock decline on Friday despite delivering better-than-expected financial results for its fiscal second quarter. The chipmaker reported revenue of $2.7 billion, representing 37% growth year-over-year and exceeding its May guidance by $39 million. However, the stock fell 6% as market participants judged the company’s updated outlook as underwhelming relative to their expectations.
The company raised its fiscal 2028 revenue forecast to approximately $18 billion, up from a previous projection of $16.5 billion, representing roughly 50% year-on-year growth. Despite this increase, the revised guidance failed to satisfy investors who had anticipated more substantial improvements, particularly following Marvell’s announcement of a strategic partnership with Google valued at up to $12.2 billion in shares. The stock was trading down 6.6% by late trading, though it remained significantly higher for the year, having gained 184% to date.
Chairman and CEO Matt Murphy attributed the results to strong demand across the company’s data center division, where revenue accelerated 46% year-over-year. The executive noted that bookings related to artificial intelligence applications remained robust and signaled expectations for continued revenue acceleration through the remainder of fiscal 2027. Marvell manufactures networking, connectivity and custom chips designed for AI data centers, positioning it to benefit from ongoing infrastructure investments.
The Google partnership, announced previously, permits the technology company to purchase up to 58.97 million Marvell shares at $206.58 each through fiscal 2033, contingent on achieving purchase targets. The agreement encompasses products compatible with Google’s TPU systems, including AI inference chips, storage controllers and network interface controllers.
Goldman Sachs analysts characterized the results as incrementally positive but noted that investor expectations had been notably elevated heading into the earnings release, fueled by strong spending from key customers and the disclosed Google relationship. The investment bank maintained a neutral rating on the stock, citing its elevated valuation relative to industry peers and uncertainty regarding the company’s capacity to expand its customer base for custom chips.
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