Google Partnership Timing Concerns Overshadow Marvell's Strong Quarterly Results

Marvell Technology Inc., whose ticker is MRVL and operates in the Financials sector, recently released its quarterly results, but the market's focus shifted to the timing of revenue from its massive Google AI chip partnership. The news led to a decline of about 8% in premarket trading on Friday.

The partnership with Alphabet's Google could potentially generate up to $120 billion in sales through fiscal year 2033, and Google also received warrants that could give it a stake worth around $12.2 billion. However, Marvell CEO Matt Murphy stated that some of this revenue is already included in the company's forecasts for fiscal years 2027-2028.

The key issue is that investors were expecting Google to contribute more significantly to Marvell's growth sooner rather than later. Marvell expects its revenue to grow by about 45% to $12 billion in fiscal year 2027 and then reach roughly $18 billion in fiscal year 2028.

Despite this, at least five brokerages raised their price targets for Marvell following the results, indicating that Wall Street remains optimistic about the company's long-term prospects. However, the market appears to be disappointed by the delayed contribution from Google.