Marvell Shares Slide on Timing Fears Despite Strong Results

Marvell Technology's shares fell by nearly 8% to $223.1 in premarket trading on August 28, as concerns over the timing of revenue from its AI chip deal with Google overshadowed better-than-expected quarterly results.

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

Investor focus on the timing of the deal's revenue contribution eclipsed Marvell's higher revenue forecasts for fiscal years 2027 and 2028. CEO Matt Murphy said that some of this revenue was already reflected in the company's prior guidance, but it would contribute much more significantly in fiscal year 2029.

Marvell has emerged as a major winner from the AI infrastructure boom, with Big Tech companies increasingly turning to custom chips for greater cost efficiency and performance. Analysts at Morgan Stanley noted that expectations were higher due to the Google deal, which was already largely reflected in prior guidance.