MRVL Stock Tumbles on Q2 Report Amid Bullish Outlook

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

The deal with Alphabet's Google could bring in $120 billion in revenue through fiscal 2033 and make the search giant one of Marvell's biggest investors, potentially holding up to $12.2 billion in shares.

However, analysts remain bullish on the company, citing its expanding customer base, diversified product portfolio, and growing demand for custom chips as a strong runway for growth.

Morningstar raised its price target on Marvell to $300, citing AI demand and gains in custom chips. Goldman Sachs retained its 'Neutral' rating and $195 price target, expecting the stock to be range-bound after earnings due to elevated expectations.