Marvell shares slide as concerns over timing of Google AI deal revenue eclipse strong results
- Marvell Chairman and CEO Matt Murphy reported record second-quarter revenue of $2.74 billion Thursday, driven by surging demand for AI-related data center chips, and raised the annual outlook for a second consecutive quarter.
- Hyperscalers are increasingly shifting to custom silicon to avoid relying on Nvidia, creating a powerful tailwind for Marvell's custom business as data center revenue climbed 46% year over year to $2.17 billion.
- Second-Quarter adjusted earnings reached $0.94 per diluted share, surpassing the $0.92 expected by analysts, while data center revenue accounted for 79% of total net revenue and communications revenue rose 10%.
- The Santa Clara, Calif.-based semiconductor company forecast third-quarter revenue of $3.15 billion and scheduled an investor day for Oct. 6, 2026, as Murphy said, "AI-related bookings remain exceptionally robust."
- Industry shifts toward inference workloads are boosting demand for purpose-built chips, which outperform commodity processors, positioning Marvell to detail its long-term AI infrastructure strategy at the Oct. 6 investor day.
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The company raised its revenue projection for fiscal year 2028 to about US$ 18 billion, above the US$ 16.5 billion it estimated before, but provided few details and fell short of expectations that its recent alliance with Google had installed.
What Makes Marvell Technology So Irresistible Now
Every quarter, one semiconductor company keeps outgrowing its own guidance while quietly locking in partnerships that look less like vendor contracts and more like infrastructure ownership. Here is why the buy button stays warm.
Google relies on the US company with a major order. This has caused Marvell's price to rise massively. However, the latest growth figures disappoint investors.
Marvell shares slide as concerns over timing of Google AI deal revenue eclipse strong results
Aug 28 (Reuters) - Marvell Technology's shares fell 8% to $223.1 in premarket trading on Friday as concerns about the potential upside from its AI chip deal with Google overshadowed better-than-expected results from the semiconductor designer. The com...
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