Marvell Technology reported a 37% increase in revenue for its fiscal second quarter, reaching $2.7 billion, which exceeded its previous guidance by $39 million. The company raised its fiscal 2028 revenue outlook to approximately $18 billion, a 50% year-on-year growth, up from $16.5 billion.
However, this outlook did not meet the heightened expectations of investors, particularly following the announcement of a partnership with Google that could involve up to $12.2 billion in shares. The limited details provided about this partnership and the fiscal outlook dampened investor sentiment, leading to the 8% drop in stock price.
Marvell's Chairman and CEO, Matt Murphy, highlighted strong demand in the data center segment, where revenue growth accelerated to 46% year-over-year, and expressed optimism about continued growth driven by AI-related bookings. Analysts from Goldman Sachs noted that investor expectations were high going into the quarter, influenced by strong spending from key customers and the Google partnership.
They described the results as an 'incremental positive' but maintained a neutral stance on the stock due to its higher valuation compared to peers and uncertainty regarding its ability to attract custom-chip customers