Marvell Reports Strong Q2 Results but Stock Falls Due to Gross Margin Concerns
Chipmaker Marvell Technology reported a strong fiscal second quarter in 2027, with revenue hitting $2.739 billion — up 37% year over year and exceeding guidance by $39 million. The data center segment drove much of the growth, rising 46% to account for nearly 80% of total sales. Management raised its fiscal 2027 revenue outlook from around $11.5 billion to about $12 billion and increased its forecast for fiscal 2028 as well. Despite these positive results, the stock fell roughly 8% in after-hours trading due to concerns over gross margin trends. Marvell's non-GAAP gross margin remained flat at 58.9%, down from 59.4% a year ago and below expectations for future quarters. Management expects margins between 57.5% and 58.5% for the next quarter, citing increased custom chip sales — which carry lower margins — as the primary cause. The company acknowledged that while its growth is being driven by strong demand in AI-related bookings, this shift toward low-margin products could pressure profitability going forward.
Tickers: $MRVL