Marvell Sees Boost from Google Deal as Q2 Earnings Loom

Marvell Technology Inc., a leading semiconductor company, is set to report its fiscal second-quarter earnings on Thursday. The market is eager to see if a landmark partnership with Google will accelerate the chipmaker's push into custom artificial intelligence silicon.

Analysts expect Marvell to post 93 cents in earnings per share (EPS) and $2.71 billion in revenue for the July quarter, representing year-over-year growth of 39% and 35%, respectively. These estimates mark a strong sequential improvement from the prior quarter, when Marvell posted 80-cent EPS on $2.42 billion in revenue.

The company's expanded agreement with Google includes a warrant structure spanning 240 tranches tied to cumulative revenue, potentially reaching $120 billion through fiscal 2033 if fully realized. This deal adds a third major hyperscaler to Marvell's custom accelerator roster alongside Amazon's Trainium and Microsoft's Maia chips.

Analysts will also be watching for updates on the pipeline for these programs and whether management adjusts its targets for custom silicon revenue, currently pegged at roughly $4 billion in fiscal 2028 and more than $10 billion in fiscal 2029. The company has benefited from data center AI spending, but faces a demanding valuation at 58 times forward earnings.