Marvell Technology Stock Drops 10% as Investors Seek More from Google Deal
Marvell Technology's stock price plummeted by 10.28% to $216.62 after the company released its fiscal second-quarter results, which beat estimates but failed to meet investors' expectations.
The data-center networking and custom AI semiconductor solutions provider saw a significant increase in sales and earnings, with revenue rising 37% and EPS increasing 50%. However, management's softer guidance for fiscal 2028 raised concerns among analysts.
Despite raising its 2027 revenue guidance to $12 billion and 2028 to $18 billion, which is compared to the last 12 months' figure of $9.5 billion, investors were hoping for more details on how the recent deal with Alphabet's Google business would impact earnings.
The company is holding an Investor Day in October, where it may provide further clarification on the Google deal and its implications on future performance.