Wire flash
FinanceMarvell Technology shares fall 6% as outlook disappoints despite 37% revenue growth
Editorial responsibility
- No named human review is recorded for this page.
- Source reporting is collected, normalized, translated or condensed automatically when needed.
- Automatically published source-backed update
Marvell Technology shares fell 6% on Friday, August 28, 2026, despite reporting a second-quarter revenue beat of $2.7 billion (up 37% year-on-year). The decline was driven by investor disappointment with the company's raised fiscal 2028 outlook of approximately $18 billion in revenue, which failed to meet elevated expectations following a recent Google partnership worth up to $12.2 billion in shares. Analysts at Goldman Sachs noted that investor expectations were high due to robust customer spending and the Google deal. Marvell CEO Matt Murphy stated that AI-related bookings remain exceptionally robust and that revenue growth is expected to accelerate through fiscal 2027. The stock remains up 184% year-to-date, buoyed by demand for its AI infrastructure products.
Source report
An aerial view of Marvell Headquarters in Santa Clara, California, United States on June 2, 2026. Tayfun Coskun | Anadolu | Getty Images
Marvell Technology shares fell 6% on Friday despite a second-quarter revenue beat, as its raised fiscal 2028 outlook failed to meet investors' elevated expectations.
The chipmaker said Thursday that it now expects revenue to grow about 50% year-on-year to around $18 billion, higher than its previous forecast of $16.5 billion.
Revenue rose 37% to $2.7 billion in its fiscal second quarter. That came in $39 million above the company guidance provided in May.
Marvell, which makes networking, connectivity and custom chips used in AI data centers, offered limited detail on its fiscal 2028 outlook, dampening investor sentiment after hopes that a Google partnership worth up to $12.2 billion in shares would further boost earnings.
The stock was last trading down 6.6%. It is up 184% this year, buoyed by demand for its products used in AI infrastructure.
Stock Chart Icon
Marvell Technology stock since the start of the year.
CEO Commentary
Marvell's Chairman and CEO Matt Murphy said the results were driven by continued strong demand across the company's data center portfolio, where revenue growth accelerated to 46% year over year.
"AI-related bookings remain exceptionally robust, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027," Murphy added.
Google Partnership Details
The Google partnership, announced last week, allows the tech giant to buy up to 58.97 million Marvell shares at $206.58 each, subject to purchase targets through fiscal 2033.
Marvell said the agreement covers products that work with Google's TPU systems, including AI inference chips, storage controllers and network interface controllers.
Analyst Commentary
Goldman Sachs analysts noted "high investor expectations" ahead of the quarter.
"We believe investor expectations were elevated heading into the quarter based on robust spending at key customers, as well as the previously disclosed Google relationship," the analysts said in a Thursday note.
The results were an "incremental positive" for the stock, they added. Goldman Sachs remains neutral on Marvell as the investment bank noted that it trades at a higher valuation than its peers and there is less certainty about its ability to add custom-chip customers.
watch now VIDEO 5:09 05:09 Marvell CEO: AI-related bookings remain exceptionally robust Fast Money
Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
Source
US Top News and AnalysisWestern
Part of this Story
Marvell Stock Falls 8% on Weak Outlook Despite Record Revenue