Marvell Stock Tanks After Q2 Report Fails to Meet Revenue Expectations

Marvell Technology's stock plummeted 8.2% in premarket trading after its second-quarter report failed to deliver a significant increase in long-term revenue outlook, despite securing a major AI chip agreement with Google.

The deal, worth up to $12.2 billion, is expected to bring in $120 billion through fiscal 2033, but the company's management revealed that most of the revenue will be generated in 2029.

Analysts remain optimistic about Marvell's growth prospects, citing its expanding customer base, diversified product portfolio, and growing demand for custom chips.

Morningstar raised its price target to $300 from $270, while Goldman Sachs maintained a 'Neutral' rating with a $195 price target.