SANTA CLARA, California, August 30, 2026, 09:42 (EDT)
- Marvell stock ended Friday at $216.62, falling 10.28%, even as the company reported its highest-ever quarterly revenue.
- Data-center sales totaled $2.17 billion, accounting for 79% of revenue, and increased 46% from a year earlier.
- Significant revenue from Marvell’s custom-chip project with Google is now expected mainly in fiscal 2029.
- The shares are trading at almost 52 times the consensus earnings estimate for fiscal 2027.
Marvell Technology Inc. (NASDAQ: MRVL) shares slid 10.28% on Friday, wiping out close to $22.4 billion in implied equity value.
The decline came after Marvell reported its best quarter to date. However, investors concentrated on when a significant Google custom-chip deal would have a substantial impact.
The timing is significant as Marvell is already valued for growth. Shares ended Friday trading at roughly 51.6 times the consensus estimate for fiscal 2027 earnings per share.
Revenue for the second quarter increased by 37% to $2.739 billion. Non-GAAP earnings were $0.94 per share, and operating cash flow totaled $605.5 million Marvell results.
Data-center revenue rose by 46% to $2.17 billion. This segment accounted for 79% of total sales, focusing both the potential gains and the execution risk.
| Investor measure | Current reading | Why it matters |
|---|---|---|
| Friday close | $216.62, fell 10.28% | About $22.4 billion in market value erased |
| Trading volume | 48.98 million | 121% of the 65-day average |
| Q2 revenue | $2.739 billion, climbed 37% | Highest quarterly result |
| Data-center revenue | $2.17 billion, grew 46% | Makes up 79% of company total |
| Q3 revenue guide | $3.15 billion, plus or minus 5% | Signals another sequential increase |
| FY2027 EPS estimate | $4.20 | Current share price translates to 51.6x earnings |
| Average analyst target | $291.26 | 34.5% higher than Friday’s close |
Marvell expects third-quarter revenue to reach $3.15 billion, with a possible variance of 5% either way. The company also anticipates adjusted earnings per share of $1.10, with a margin of error of five cents.
The company maintains its projection for fiscal 2027 revenue at around $12 billion. For fiscal 2028, it aims for approximately $18 billion, driven by demand for custom compute and interconnect solutions.
The Google deal has the potential to bring in up to $120 billion by fiscal 2033. But executives currently anticipate a significant impact will start in fiscal 2029 Reuters.
The market sent a clear signal. Near-term demand remains solid, yet future revenue is discounted more sharply as expectations rise.
Trading volume on Friday totaled 48.98 million shares, around 21% higher than the 65-day average, indicating widespread involvement in the repricing.
Wall Street sentiment stays positive. Analysts most recently issued 37 Buy or Overweight ratings, alongside six Holds and zero Sell ratings. The mean price target stood at $291.26 WSJ market data.
Despite the decline, Marvell is still trading at approximately 32.4 times its projected fiscal 2028 earnings per share. Competitor Broadcom Inc. (NASDAQ: AVGO) was recently priced at around 32 times anticipated earnings.
Margins present a further challenge. Marvell projected an adjusted gross margin between 57.5% and 58.5%, lower than the 58.9% recorded in the second quarter.
Risks are still focused. Estimate forecasts may face pressure due to Google-related timing, reliance on key customers, and the integration process for Celestial AI and XConn. Marvell finalized these two acquisitions in February SEC filing.
Marvell’s upcoming investor day on October 6 is the next key date. Investors will be watching for updates on program milestones that link its current data-center performance to projected fiscal 2029 revenue.
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