Marvell Falls 8% as Google AI Deal Timing Weighs on Stock

Marvell Technology shares fell about 8% in premarket trading Friday as investors focused on the timing of revenue from a potential $120 billion Google AI-chip partnership rather than the company’s quarterly results.

The company reported fiscal second-quarter revenue of $2.74 billion, a 37% increase year over year, and raised its fiscal 2027 revenue guidance to roughly $12 billion and fiscal 2028 to about $18 billion. The stock had climbed about 184% so far in 2026.

On the earnings call, JPMorgan analyst Harlan Sur asked why the Google program did not show up more clearly in fiscal 2028 expectations, noting he expected it to begin contributing then. CEO Matt Murphy responded that revenue from programs already underway is included in next year’s numbers, while newer programs tied to the Google agreement are expected to contribute more materially in fiscal 2029. Murphy said Marvell will provide additional detail at an investor day on Oct. 6.

Data-center revenue, a key measure of Marvell’s AI business, rose 46% to $2.17 billion in the quarter. Management expects data-center sales to grow more than 60% in fiscal 2028.

Melius Research analyst Ben Reitzes observed that investors were “just wrestling with this” and called the company’s figures “huge.” TECHnalysis Research chief analyst Bob O’Donnell warned expectations around custom AI accelerators may be running ahead of confirmed program ramps. Citi expressed encouragement about the data-center outlook, while Morgan Stanley noted the stock typically reacts more to changes in long-range forecasts than to individual quarters.

Marvell’s guidance implies about $5 billion to $6 billion of custom-chip revenue in calendar 2027. Management has not provided a detailed year-by-year breakdown showing how much of the Google opportunity is incremental, when specific programs will ramp, or projected margins for those products.

Melius raised its price target to $350 from $325, citing Marvell’s work with Google, Microsoft and AI connectivity as long-term drivers. Management reiterated that larger incremental contributions from newer Google-linked programs are expected in fiscal 2029 and beyond, and said further program-level detail will be shared at the October investor day.