SANTA CLARA, California, August 29, 2026, 14:48 (ET)
- Marvell ended Friday at $216.62, falling 10.28%, with 48.7 million shares traded.
- Revenue for the fiscal second quarter climbed 37% to reach an all-time high of $2.74 billion.
- Data-center sales totaled $2.17 billion, accounting for 79% of overall revenue.
- Significant revenue from Google’s custom chips is not anticipated before fiscal 2029.
Marvell Technology, Inc. (NASDAQ: MRVL) dropped 10.28% on Friday. Shares finished at $216.62, with 48.7 million traded market data.
The decline came after Marvell reported record earnings and raised its outlook. However, investors concentrated on the timeline for Marvell’s Google custom-chip deal to have a significant impact on revenue.
The deal has the potential to bring in $120 billion by the end of fiscal 2033. Chief Executive Matt Murphy stated its impact will be notably larger starting in fiscal 2029 Reuters.
The delayed timeline accounts for the response. Marvell is valued at 58.4 times forward earnings, while Broadcom Inc. (NASDAQ: AVGO) trades at 32.2 times forward earnings.
| Investor measure | Latest figure | Signal |
|---|---|---|
| Friday close | $216.62 | Fell 10.28% |
| Q2 revenue | $2.74 billion | Climbed 37% from previous year |
| Data-center revenue | $2.17 billion | 79% of total; increased 46% |
| Q3 revenue guide | $3.15 billion ±5% | Roughly 15% higher than Q2 midpoint |
| Q2 operating cash flow | $605.5 million | 22.1% of revenue |
Revenue for the fiscal second quarter climbed 37% to $2.74 billion. Data-center sales advanced 46%, totaling $2.17 billion, and GAAP net income stood at $308 million company results.
Marvell forecasts fiscal third-quarter revenue at $3.15 billion, with a possible variance of 5%, and projects adjusted earnings per share of $1.10. Growth is picking up pace.
The margin forecast is lower. The company projects non-GAAP gross margin between 57.5% and 58.5%, under the prior quarter’s 58.9%.
Marvell is projecting approximately 45% revenue growth for fiscal 2027. The company aims for around $18 billion in fiscal 2028 revenue, driven primarily by custom silicon and connectivity.
Wall Street sentiment stays optimistic following the decline. The average price target from 44 analysts sits at $278.89, which is 28.8% higher than Friday’s closing price. However, targets vary, spanning from $126 up to $400 analyst consensus.
Following the report, at least eight brokerages increased their price targets. LSEG data referenced by Reuters showed the median target climbed to $275.
Risks: Delays in custom-chip timelines are possible, while demand is mainly led by a limited number of hyperscale customers. Profitability may also be hit by thinner margins, export limits, and limited access to advanced packaging.
The next test arrives on October 6. Marvell’s investor day needs to demonstrate that projected fiscal 2029 revenue supports the current valuation premium.
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