Marvell stock could slide despite strong Q2 revenue

Marvell Technology reported second-quarter revenue of $2.73 billion, a 37% increase year over year, while its stock has slipped about 32% from its year-to-date high. The share price fell after the company’s forward guidance came in below some investor expectations.

Revenue in the quarter was driven by data-center sales of $2.17 billion, up 46% from a year earlier. Communications revenue reached $568 million, a 10% increase. Marvell supplies chips and custom ASICs for compute, networking and storage markets and counts major cloud providers among its largest customers.

Management forecast third-quarter revenue of about $3.15 billion, which would represent roughly a 50% sequential increase, and reiterated an outlook for full-year revenue growth of approximately 60%. The company projects fiscal 2027 revenue near $12 billion and fiscal 2028 revenue near $18 billion. Marvell has a multiyear contract to supply custom chips to one large cloud customer valued at $12.2 billion. Some analyst models estimate that related business could generate more than $120 billion through fiscal 2033 and reach an annual run rate near $25 billion beginning in 2028.

The stock’s decline followed the guidance miss and came amid broader weakness in the semiconductor sector. Semiconductor-focused exchange-traded funds have pulled back from their highs this year. Marvell shares recovered from a July low of $162.80 to trade near $223, remaining well below earlier peaks.

Analysts’ financial models project revenue around $12 billion for the current year and roughly $18.2 billion for the following year. Consensus estimates show earnings per share near $4.20 for 2025 and $6.72 for 2026, reflecting expectations for rapid top-line growth.

Valuation metrics show Marvell trading at a high multiple relative to peers. On a forward price-to-earnings basis, the stock is near 75 times expected earnings compared with an industry average in the low 20s. Using GAAP measures, the forward P/E rises to about 124, above typical sector medians.

Technical indicators offer mixed signals. The stock has held slightly above its 100-day exponential moving average and sits modestly above a 50% Fibonacci retracement level. Chart patterns identified by technical analysts include a bearish flag and positioning between the first and second support lines of an Andrews pitchfork. A drop below the 100-day moving average and the lower pitchfork boundary would increase the likelihood of a retest of the July low around $162.

Investors will monitor upcoming quarterly reports and the initial revenue flow from large cloud contracts for data points on whether revenue and margins align with current forecasts.