Marvell Shares Plummet on Investor Disappointment Over Google Deal Timeline
Marvell's shares took a hit on Friday, falling over 8% to $221.6 in early trading. The decline came despite the company reporting solid results and increasing revenue forecasts for fiscal years 2027 and 2028.
The chip designer has been a market darling this year, with its stock nearly tripling as Big Tech companies rush to adopt custom chips for greater efficiency and performance. However, investors are looking beyond short-term gains and want more concrete evidence of the company's long-term growth prospects.
The recent Google deal, which could generate up to $120 billion in revenue through fiscal 2033, has contributed to heightened expectations. But analysts at Morgan Stanley pointed out that its contribution is already largely reflected in Marvell's prior guidance.
CEO Matt Murphy explained that the company's custom revenue targets for fiscal year 2028 already account for some Google-related revenue and that it will contribute more significantly in fiscal year 2029.