Marvell Reports Strong Q2 Results but Stock Falls Amid Google Deal Concerns
Marvell Technology (MRVL) reported a strong second quarter with revenue rising 37% year-over-year to $2.74 billion and adjusted earnings per share up 40%. The company raised its fiscal 2027 and 2028 revenue forecasts, projecting growth of around 45% for FY2027 and an increase from $16.5B to $18B in FY2028. Despite these positive results, the stock fell sharply after the earnings report due to concerns over a long-term deal with Google (GOOG). The agreement involves Marvell supplying custom silicon products for Google's TPU ecosystem. The Google partnership includes a warrant allowing Google to purchase up to 58 million shares at $206.58 per share, potentially giving it a stake worth up to $12.2 billion by fiscal 2033. However, the deal is expected to generate most of its revenue beyond FY2028, which has disappointed investors looking for near-term benefits. CEO Matt Murphy noted that current custom product expectations already include revenues from this agreement through FY2028.
Topics: AI growth earnings report Google deal impact Marvell Technology