Marvell Stock Plummets as Google Deal Slips to Fiscal 2029

Marvell Technology's stock plummeted by 7% in early trading on Friday, despite reporting record Data Center numbers and raising its outlook. The company's shares dropped to $225 after management revealed an expanded custom silicon agreement with Alphabet's Google that could scale into a franchise-defining opportunity.

The agreement is expected to have a significant impact on Marvell's revenue, but the big payoff is not until fiscal 2029, which was later than the market had anticipated. This has led to concerns about the timing of the deal and its potential effect on the company's finances.

Marvell reported fiscal second-quarter 2027 revenue of $2.739 billion, up 37% year over year, with non-GAAP earnings of $0.94 per share. The Data Center revenue reached a record $2.17 billion, up 46% year over year, and represented 79% of total revenue.

The expanded Google agreement covers custom AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute, all attached to the TPU ecosystem. A warrant allows Google to acquire up to 7% of Marvell's shares, tied to revenue milestones.