SANTA CLARA, California, August 28, 2026, 23:56 (EDT).
- Marvell shares ended down 10.3% at $216.62, with volume at 48.98 million shares.
- Data-center revenue increased by 46% to $2.17 billion, accounting for 79% of total sales.
- The midpoint for third-quarter non-GAAP gross margin declined by 90 basis points from the previous quarter.
- There are still 37 Buy or Overweight ratings from analysts, compared with six Hold recommendations.
Marvell Technology (NASDAQ: MRVL) fell 10.3% on Friday, wiping out approximately $22 billion in market value, after reporting its highest ever quarterly revenue.
The selloff highlighted an issue of timing rather than a drop in demand. Investors are seeking quicker returns from Marvell’s growing custom-chip partnership with Google.
Revenue for the fiscal second quarter climbed 37% to $2.739 billion. Data-center revenue was up 46% at $2.172 billion, accounting for 79% of overall sales Marvell results.
Non-GAAP earnings came to $0.94 per share, just topping the $0.93 per-share analyst consensus compiled by FactSet.
| Investor test | Latest figure | Comparison |
|---|---|---|
| Revenue | $2.739 billion | Up 37% from a year ago |
| Data-center revenue | $2.172 billion | Up 46% from prior year |
| Q2 non-GAAP gross margin | 58.9% | Q3 midpoint guidance: 58.0% |
| Operating cash flow | $605.5 million | Represents 22.1% of revenue |
| Forward P/E | 58.4 times | Broadcom: 32.2 times |
Guidance for third-quarter revenue is set at $3.15 billion, indicating sequential growth of about 15%.
Margins deliver a starker message. The midpoint for non-GAAP gross margin stands at 58.0%, which is 90 basis points lower than in the second quarter.
Management projects revenue growth of approximately 45% for fiscal 2027. The company has also increased its revenue goal for fiscal 2028 to around $18 billion.
The Google custom-chip deal could bring in as much as $120 billion by the end of fiscal 2033. Chief Executive Matt Murphy stated its impact will be more significant beginning in fiscal 2029 Reuters.
The timing is significant for Marvell’s valuation. Its forward earnings multiple stands at 58.4 times, higher than Broadcom’s (NASDAQ: AVGO) 32.2 times.
Trading volume on Friday totaled 48.98 million shares, exceeding the 65-day average by 21% and indicating widespread selling WSJ market data.
The analyst environment continues to look positive. According to FactSet, there are 30 Buy ratings, seven Overweight ratings, and six Hold ratings, while no Sell ratings have been reported.
The median target of $295 is 36% higher than Friday’s closing price. The company still needs to turn bookings into revenue while avoiding additional margin decline.
Marvell closed the quarter holding $3.93 billion in cash. The company reported operating cash flow of $605.5 million, and stock compensation totaled $326.2 million.
Risks: Heavy reliance on key customers, constraints in advanced chip supplies, and postponed custom-silicon rollouts may impact outlooks. Improved performance could trigger a valuation rebound.
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