Marvell Beats Earnings Estimates but Shares Drop Amid Investor Concerns Over Long-Term Google Deal
Despite beating revenue estimates and raising its full-year guidance, Marvell Technology (NASDAQ: MRVL) saw a more than 8% drop in share price following the release of Q2 results. The company reported $2.7 billion in revenue—$39 million above expectations—and raised its calendar year 2026 revenue outlook to $12 billion from $11.5 billion previously, with an updated 2027 target now at $18 billion. The selloff was largely attributed to the newly announced expanded partnership with Alphabet Inc.'s (NASDAQ: GOOGL) Google division. While the deal could lead to up to $120 billion in cumulative purchases over seven years, investors were disappointed by its long-term nature and lack of immediate financial impact. The potential revenue is tied to milestone-based warrant vesting rather than guaranteed figures. Analysts at Oppenheimer raised their price target for Marvell but maintained an Outperform rating due to strong data center demand—accounting for 79% of total revenues—and ongoing AI-related growth in custom chip programs like Trainium and Maia.
Topics: AI demand Google partnership Marvell earnings stock selloff