SANTA CLARA, California, August 30, 2026, 23:05 (EDT) – Marvell Technology (MRVL.O) stock declined 10.3%, erasing $22 billion from its market capitalization after the company said that anticipated revenue from Google would not materialize until 2029.
- Marvell ended Friday at $216.62, a drop of 10.28%, with 48.98 million shares traded.
- Revenue for the fiscal second quarter climbed 37% to reach an all-time high of $2.739 billion.
- Operating cash flow totaled $605.5 million, with data-center revenue increasing by 46%.
- Management stated that revenue connected to Google will grow substantially larger in fiscal 2029.
Marvell Technology, Inc. (NASDAQ: MRVL) dropped 10.28% on Friday, as record earnings were not enough to meet market expectations for AI. The slump wiped out around $22.3 billion in value, with roughly 900 million shares outstanding.
The development is significant as Marvell’s stock had almost tripled during 2026. Investors had anticipated quicker gains from its broader custom-chip partnership with Google.
Revenue for the quarter ended August 1 totaled $2.739 billion, marking a 37% increase compared to the same period last year and surpassing the guidance midpoint by $39 million. GAAP net income amounted to $308 million, with operating cash flow at $605.5 million Marvell results.
Data-center sales increased by 46% with strong demand seen in custom silicon, switching, storage and electro-optics. Company materials showed the segment accounted for roughly 79% of revenue in the quarter.
Marvell forecast fiscal third-quarter revenue at $3.15 billion, with a possible variation of 5% either way. The company projected adjusted earnings per share of $1.10, and anticipated a non-GAAP gross margin between 57.5% and 58.5%.
The Google deal is significant but structured to pay out mostly later. Alphabet Inc. (NASDAQ: GOOGL) was granted warrants covering as many as 58.97 million Marvell shares at a price of $206.58 apiece. The majority will vest in 240 installments, each linked to $500 million in custom-product revenue Marvell 8-K.
Chief Executive Matt Murphy stated that Google’s contributions will play a much larger role in fiscal 2029. According to Morgan Stanley analysts, the majority of the agreement had already been included in earlier guidance Reuters.
| Measure | Current figure | Investor read-through |
|---|---|---|
| Friday close | $216.62, down 10.28% | Roughly $22.3 billion wiped out |
| Q2 revenue | $2.739 billion, up 37% | All-time high growth, slight beat on guide |
| Q3 revenue guide | $3.15 billion ±5% | Midpoint implies sequential growth of about 15% |
| Forward P/E | 58.41× | Higher than Broadcom’s 32.15× |
| Analyst median target | $295 | 36% premium over Friday close |
Despite the decline, analysts maintain an optimistic outlook. According to FactSet, there are 30 Buy recommendations, seven Overweight, and six Hold ratings, with no analysts assigning a Sell rating. The median price target is $295, compared with a closing price of $216.62 on Friday WSJ market data.
Marvell’s valuation provides limited margin for postponement. Shares are priced at 58.41 times projected earnings, while Broadcom Inc. (NASDAQ: AVGO) trades at 32.15 times. The higher multiple requires ongoing rapid growth.
Marvell’s next scheduled catalyst is its investor day on October 6. Executives will outline the company’s strategy for AI infrastructure and discuss its long-term growth initiatives.
Risks: Google revenue could be recognized later than anticipated by investors. The level of customer concentration is significant, with four customers accounting for 72% of receivables. Marvell carries additional tariff and supply-chain risk by conducting most manufacturing outside the United States fiscal Q2 10-Q.
Related articles: NASDAQ:MRVL
