Marvell Posts Strong Results but Stock Falls Amid High Expectations
On August 28, Marvell Technology (NASDAQ:MRVL) shares fell over 8% despite reporting record quarterly results and raising growth targets for fiscal years 2027 and 2028. The stock’s decline reflects investor impatience as the market seeks immediate proof of AI-driven revenue acceleration from its custom-chip deal with Google, which is expected to become more significant in fiscal year 2029. Marvell's Q2 revenue reached $2.739 billion, up 37% YoY, driven by a 46% increase in data center sales tied to AI infrastructure. Non-GAAP net income was $865.9 million with strong cash flow of $605.5 million. Management raised guidance for both fiscal years ahead. Despite the solid performance and positive analyst reactions—eight brokerages increased price targets—the stock fell due to a mismatch between current results and expectations for immediate growth from long-term contracts.
Topics: AI chip demand revenue growth stock performance