Marvell Reports Strong Q2 Performance but Faces Market Disappointment
Custom chipmaker Marvell Technology (MRVL) delivered a strong second-quarter performance in fiscal 2027, with record revenues of $2.74 billion and earnings per share rising by 40.3%. The company raised its revenue guidance for both fiscal years 2027 and 2028 to $12 billion and $18 billion respectively, reflecting robust demand in the AI infrastructure market. Despite these positive results, MRVL shares fell over 14% following the August 27 earnings report. The decline was attributed to unmet investor expectations, particularly concerning a multi-year custom chip deal with Alphabet's Google (GOOG), which is expected to generate significant revenue starting in fiscal 2029. Marvell has an impressive client roster including Amazon Web Services, Microsoft, and Apple, and it recently secured a $2 billion investment from Nvidia. The company continues to show strong growth potential despite margin pressures due to increased stock-based compensation.
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Topics: AI infrastructure Alphabet deal custom silicon Marvell Technology stock performance