SANTA CLARA, California, August 28, 2026, 07:21 (EDT) — Marvell Technology (MRVL.O) fell 6.9% as investors reacted to Google’s adjusted forecast, placing significant AI-related revenue gains further out to 2029.
- Shares of Marvell dropped 6.9% to $224.77 during premarket trading as of 06:57 EDT.
- Revenue for the fiscal second quarter increased by 37%, reaching an all-time high of $2.739 billion.
- Data-center revenue increased by 46%, with yearly forecasts rising as well.
- Significant Google-related revenue is expected to be concentrated in fiscal 2029.
Marvell Technology, Inc. (NASDAQ: MRVL) shares dropped 6.9% ahead of the opening bell on Friday, cutting about $14.6 billion from the company’s implied market capitalization.
Timing, rather than demand, proved decisive. Investors discovered that the largest revenue boost from Marvell’s collaboration with Google on custom chips might not materialize until fiscal 2029.
The premarket price of $224.77 came after Thursday’s closing level of $241.45. By 06:57 EDT, roughly 1.22 million shares had traded MarketWatch quote.
Marvell posted record revenue of $2.739 billion in its fiscal second quarter. The company’s sales increased by 37% and surpassed the midpoint of its guidance by $39 million company release.
| Metric | Fiscal Q2 2027 | Comparison |
|---|---|---|
| Revenue | $2.739 billion | up 37% from prior year |
| Adjusted EPS | $0.94 | $0.93 expected |
| Data-center revenue | $2.17 billion | up 46% from prior year |
| GAAP net income | $308 million | $194.8 million in the same period last year |
| Operating cash flow | $605.5 million | 22.1% of revenue |
Adjusted earnings totaled $0.94 per share, slightly above the Wall Street forecast of $0.93. GAAP diluted earnings increased to $0.33.
Revenue from data centers increased by 46% to approximately $2.17 billion. The segment accounted for nearly 80% of sales for the quarter and continues to drive the company’s valuation.
Management increased its fiscal 2027 revenue outlook to about $12 billion, up from $11.5 billion. The forecast for fiscal 2028 revenue was also raised to approximately $18 billion, compared with $16.5 billion previously.
Revenue for the third quarter is projected at $3.15 billion, with a margin of error of 5%. Adjusted earnings per share are forecast at $1.10.
However, the agreement with Google shifted the benchmark. Chief Executive Matt Murphy stated that current goals already account for some associated revenue, and a significantly greater impact is projected for fiscal 2029.
The timeline defied predictions set by last week’s deal. The custom-chip alliance holds the potential to bring in up to $120 billion by fiscal 2033 Reuters report.
Following the results, at least five brokerages lifted their price targets. The LSEG median target stood at $275, around 22% higher than the premarket quote.
Valuation continues to require rapid action. Marvell was valued at 58.4 times forward earnings, in contrast to Broadcom’s 32.2 times, following a 184% increase this year.
Risks: Revenue timing could be affected by concentrated customer base, supply limitations for advanced chips, and delays in program launches. The elevated valuation further increases the impact of any misses to long-term AI projections.
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