Marvell Technology experienced a stock decline on Friday despite posting second-quarter financial results that surpassed expectations. The chipmaker reported revenue of $2.7 billion, representing 37% growth and exceeding guidance by $39 million. Leadership raised the fiscal 2028 revenue outlook to approximately $18 billion, up from a prior estimate of $16.5 billion, representing anticipated 50% year-on-year growth.
Despite these positive metrics, shares retreated 6% as market participants determined the forward guidance fell short of their heightened expectations. Analysts attributed the elevated investor sentiment heading into the earnings release to robust spending from key customers and the previously announced partnership with Google. The technology company, which produces networking, connectivity, and custom chips for AI data center applications, had seen its stock appreciate 184% earlier in the year amid strong demand for its infrastructure products.
Marvell Chairman and CEO Matt Murphy attributed the quarter’s performance to sustained strong demand across the data center portfolio, which accelerated to 46% year-over-year revenue growth. He indicated that AI-related bookings remained exceptionally strong and projected further revenue growth acceleration throughout the remainder of fiscal 2027. The Google partnership, disclosed the previous week, enables the technology giant to acquire up to 58.97 million Marvell shares at $206.58 per share through fiscal 2033, contingent on purchase targets. The agreement covers products designed to integrate 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 maintained a neutral rating on the stock. The investment bank noted that Marvell trades at a valuation premium relative to peers and cited uncertainty regarding its capacity to expand its custom-chip customer base.
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