Technology
Marvell shares fall 8% despite 37% quarterly revenue growth
High investor expectations and limited details on a revised multi-year forecast weighed on the chipmaker's stock.
The short version
- Marvell Technology shares declined 8% in premarket trading following its fiscal second-quarter financial report.
- The company reported $2.7 billion in quarterly revenue, up 37% year-over-year, and raised its fiscal 2028 revenue forecast to roughly $18 billion.
- Despite strong AI data center demand and a recent major partnership with Google, market sentiment was dampened by elevated valuation expectations and sparse details on long-term targets.
Key facts
- Marvell reported fiscal second-quarter revenue of $2.7 billion, a 37% year-over-year increase that exceeded company guidance by $39 million.[CNBC]
- The company raised its fiscal 2028 revenue forecast from $16.5 billion to approximately $18 billion.[CNBC]
- Revenue in Marvell's data center segment grew 46% year-over-year during the quarter.[CNBC]
- A recently announced agreement enables Google to acquire up to 58.97 million Marvell shares at $206.58 each through fiscal 2033, linked to product purchases for TPU systems.[CNBC]
- Marvell stock dropped 8% in premarket trading after gaining 184% earlier in the year.[CNBC]
What remains uncertain
- The extent to which Marvell can secure additional custom-chip clients beyond its Google agreement remains uncertain according to analyst assessments.[CNBC]