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Marvell stock tumbles 8% as outlook underwhelms despite Google deal
CNBC • • business
Key Points:
- Marvell Technology's shares dropped 8% in premarket trading despite beating second-quarter revenue estimates, as its raised fiscal 2028 revenue outlook fell short of investor expectations.
- The chipmaker now expects fiscal 2028 revenue to grow about 50% year-on-year to approximately $18 billion, up from its prior forecast of $16.5 billion, while Q2 revenue rose 37% to $2.7 billion.
- Limited details on the fiscal 2028 outlook and uncertainty around the impact of a recent $12.2 billion Google partnership dampened investor enthusiasm despite strong AI-related demand.
- Marvell's CEO highlighted robust AI-related bookings and accelerating data center revenue growth, with the company benefiting from products supporting Google's TPU systems under the new partnership.
- Goldman Sachs analysts noted elevated investor expectations and view the results as an incremental positive but remain neutral due to Marvell's high valuation and uncertainty in expanding its custom-chip customer base.
