Marvell Tech Seeks Guidance Boost from Expanded Google Partnership

Marvell Technology is set to report its Q2 FY27 results after market close on August 27, and investors are eagerly anticipating whether the company's management will raise its revenue guidance for both FY27 and FY28.

The question of a potential guidance increase has become even more pressing following Marvell's expanded partnership with Alphabet (GOOG.US), announced last month. The agreement covers a wide range of custom silicon programs tied to the TPU ecosystem, including AI inference accelerators and near-memory compute.

Marvell had previously forecasted revenue growth of about 40% in FY27 to nearly $11.5 billion, followed by 45% in FY28 to around $16.5 billion. However, with the Google partnership now in place, investors will be looking for whether this changes management's outlook.

The interconnect segment remains a key growth driver for Marvell, with revenue expected to grow more than 70% in FY27, up from its previous forecast of 50%. This acceleration is driven by emerging scale-up optical products and other areas such as DCI, AECs, retimers, and optics.

Another potential catalyst for the stock could be a meaningful increase in Marvell's custom silicon revenue growth expectations. The company had previously guided for custom revenue to grow more than 20% in FY27, double that in FY28, and ultimately exceed $10 billion in FY29.