Marvell Stock Tumbles Amid Missed Outlook Despite Revenue Beat

Marvell Technology shares dropped by 8% in premarket trading despite its second-quarter revenue exceeding expectations, as the company's fiscal 2028 outlook fell short of investors' high hopes.

The chipmaker reported a 37% year-over-year increase in revenue to $2.7 billion, beating its guidance provided in May by $39 million. However, this growth failed to meet investors' expectations, who were anticipating an even stronger performance.

Marvell's Chairman and CEO Matt Murphy attributed the results to continued strong demand across the company's data center portfolio, with revenue growth accelerating to 46% year over year. He also stated that AI-related bookings remain exceptionally robust and are expected to drive further revenue growth through fiscal 2027.

The stock's decline comes despite a recent partnership between Marvell and Google, which allows the tech giant to purchase up to 58.97 million shares of Marvell at $206.58 each over the next six years. Goldman Sachs analysts noted that investor expectations were elevated ahead of the quarter due to robust spending by key customers and the disclosed Google relationship.

Goldman Sachs remains neutral on Marvell, citing its higher valuation compared to peers and uncertainty about adding custom-chip customers.