Marvell Technology shares dropped 8% in premarket trading on Thursday, even as the chipmaker posted a better-than-expected fiscal second quarter and lifted its long-term revenue forecast. The sell-off underscores just how high investor expectations had climbed ahead of the report, fueled by a recently announced Google partnership.
The company now expects revenue to grow about 50% year over year to around $18 billion in fiscal 2028, up from its prior forecast of $16.5 billion. But with limited detail on how that growth would materialize, the raised guidance did little to satisfy investors who had hoped the Google deal would provide a bigger boost to earnings.
For the fiscal second quarter, revenue rose 37% to $2.7 billion, coming in $39 million above the guidance the company provided in May. Marvell, which makes networking, connectivity and custom chips for AI data centers, said growth in its data center portfolio accelerated to 46% year over year.
“AI-related bookings remain exceptionally robust, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027,” Chairman and CEO Matt Murphy said in a statement.
The stock was last down 8% in premarket action, though it remains up 184% for the year, lifted by strong demand for its AI infrastructure products.
Google partnership weighs on expectations
The Google agreement, announced last week, allows the tech giant to buy up to 58.97 million Marvell shares at $206.58 each, subject to purchase targets through fiscal 2033. The deal, valued at up to $12.2 billion in shares, covers products that work with Google’s TPU systems, including AI inference chips, storage controllers and network interface controllers.
That partnership stoked hopes that Marvell’s custom-chip business would get a meaningful earnings boost, but the company offered little color on how the deal would translate into fiscal 2028 results, leaving investors wanting more.
Goldman Sachs analysts acknowledged the elevated expectations heading into the print.
“We believe investor expectations were elevated heading into the quarter based on robust spending at key customers, as well as the previously disclosed Google relationship,” the analysts said in a Thursday note.
They called the results an “incremental positive” for the stock but maintained a neutral rating, noting that Marvell trades at a higher valuation than peers and faces uncertainty about its ability to win additional custom-chip customers.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/28/marvell-mrvl-q2-earnings-outlook.html
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