Marvell Shares Plummet as Investors Pin Hopes on Delayed Google Deal Revenue

Marvell Technology's shares dropped 8% to $223.1 in premarket trading on Friday as concerns over the timing of revenue from its AI chip deal with Google overshadowed strong quarterly results.

The company secured a custom-chip deal with Alphabet's Google last week that could generate up to $120 billion in revenue through fiscal 2033 and make Google one of Marvell's largest shareholders.

Analysts at Morgan Stanley said investor focus was on the timing of the deal's revenue contribution, which is already largely reflected in the company's prior guidance.

The company's CEO Matt Murphy stated that Marvell's custom revenue targets through fiscal year 2028 already included some Google-related revenue and would contribute more significantly in fiscal year 2029.