Marvell Drops 8% Despite $2.7B Revenue Beat — SkimNews
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- Marvell Technology shares dropped 8% in premarket trading even after second-quarter revenue beat the company's own guidance by $39 million
- Marvell's Q2 revenue rose 37% to $2.7 billion, while data center revenue growth accelerated to 46% year-over-year
- Marvell raised its fiscal 2028 revenue outlook to roughly $18 billion, up from a prior $16.5 billion forecast and implying about 50% annual growth, but offered limited detail that frustrated investors
- Matt Murphy, Marvell's Chairman and CEO, said AI-related bookings remain "exceptionally robust" and that revenue growth will accelerate further through the remainder of fiscal 2027
- Google's newly disclosed partnership allows it to buy up to 58.97 million Marvell shares at $206.58 each through fiscal 2033, covering products that work with Google's TPU systems including AI inference chips, storage controllers, and network interface controllers
- Goldman Sachs flagged "high investor expectations" driven by robust customer spending and the Google relationship, called the results an "incremental positive," but kept a neutral rating citing Marvell's higher valuation versus peers and less certainty about adding custom-chip customers
Why it matters: Despite beating Q2 guidance by $39M and raising its fiscal 2028 outlook to roughly $18B, Marvell fell because Goldman Sachs flagged 'elevated investor expectations' fueled by robust customer spending and the Google partnership — the limited fiscal 2028 detail left buyers wanting more, even with the stock still up 184% year-to-date on AI infrastructure demand.
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