Marvell Stock Drops Amid Delay in Google AI Chip Revenue

Marvell Technology MRVL shares dropped by over 7% in early Friday trading due to investors' focus on the delayed revenue contribution expected from its expanded Google AI chip relationship.

The company now anticipates fiscal 2027 revenue of approximately $12 billion, up from its previous forecast of $11.5 billion.

Marvell's revised projections for fiscal 2028 have also increased to roughly $18 billion from the initial estimate of $16.5 billion.

This comes after Marvell secured a custom-chip agreement with Alphabet's Google (GOOGL) that could potentially generate up to $120 billion in revenue through fiscal 2033.

However, Chief Executive Matt Murphy stated that the program should have a larger financial impact from fiscal 2029.