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Marvell’s earnings and guidance beat expectations, yet its stock drops more than 7%? Google’s $100 billion order won’t ramp until 2029
Marvell Technology delivered better-than-expected earnings and guidance, and raised its revenue outlook for fiscal 2027 and 2028 for two consecutive quarters. Although the company did not meaningfully increase its long-term targets, Google’s $100 billion order will not bear fruit until 2029, leaving some investors disappointed who had expected faster growth. The stock fell as much as 7% during Thursday’s trading session.
Marvell’s earnings and guidance both beat! Raises long-term outlook for two straight quarters
The U.S. data-center chipmaker Marvell Technology reported its fiscal 2027 second-quarter results: revenue of $2.739 billion, a record high, up 37% year over year. According to the company, data centers are its main profit engine. Revenue from that segment grew 46% year over year and accounted for 79% of total revenue, higher than 74.4% in fiscal 2026.
Why couldn’t Google’s $100 billion order lift the stock?
Reuters reported that CEO Matt Murphy said that the company’s custom revenue target for fiscal 2028 already includes part of the revenue from that deal. A substantial ramp will not occur until fiscal 2029. He also said that revenue from custom chips will more than double next year. The prior target of “more than $10 billion” for fiscal 2029 still has room to be revised upward, but he declined to provide a new target.
Driven by AI this year, Marvell (MRVL) stock has already risen nearly 189%, and it was added to the S&P 500 in June, drawing passive funds and additional buying.
Bob O’Donnell, chief analyst at TECHnalysis Research, said expectations for customized AI chips have been pushed very high in the market, and he believes expectations are generally running ahead of reality.
AI shifts from training to inference—custom chips are in demand
The motivation for big tech companies to design their own chips is that, compared with processors from Nvidia that are expensive and face tight supply, their own solutions are cheaper to build and run. This trend has made Marvell’s custom silicon intellectual property (IP) and ASIC business one of the winners amid the data-center buildout wave.
Another tailwind is a change in workload structure. As AI application focus moves from model training toward inference, custom chips often deliver better performance-per-task and energy efficiency than general-purpose processors, driving demand upward as well.
This article—“Marvell’s earnings beat expectations, yet its stock drops more than 7%? Google’s $100 billion order won’t ramp until 2029”—first appeared on .
Marvell’s earnings and guidance beat expectations, yet its stock drops more than 7%? Google’s $100 billion order won’t ramp until 2029
Marvell Technology delivered better-than-expected earnings and guidance, and raised its revenue outlook for fiscal 2027 and 2028 for two consecutive quarters. Although the company did not meaningfully increase its long-term targets, Google’s $100 billion order will not bear fruit until 2029, leaving some investors disappointed who had expected faster growth. The stock fell as much as 7% during Thursday’s trading session.
Marvell’s earnings and guidance both beat! Raises long-term outlook for two straight quarters
The U.S. data-center chipmaker Marvell Technology reported its fiscal 2027 second-quarter results: revenue of $2.739 billion, a record high, up 37% year over year. According to the company, data centers are its main profit engine. Revenue from that segment grew 46% year over year and accounted for 79% of total revenue, higher than 74.4% in fiscal 2026.
Why couldn’t Google’s $100 billion order lift the stock?
Reuters reported that CEO Matt Murphy said that the company’s custom revenue target for fiscal 2028 already includes part of the revenue from that deal. A substantial ramp will not occur until fiscal 2029. He also said that revenue from custom chips will more than double next year. The prior target of “more than $10 billion” for fiscal 2029 still has room to be revised upward, but he declined to provide a new target.
Driven by AI this year, Marvell (MRVL) stock has already risen nearly 189%, and it was added to the S&P 500 in June, drawing passive funds and additional buying.
Bob O’Donnell, chief analyst at TECHnalysis Research, said expectations for customized AI chips have been pushed very high in the market, and he believes expectations are generally running ahead of reality.
AI shifts from training to inference—custom chips are in demand
The motivation for big tech companies to design their own chips is that, compared with processors from Nvidia that are expensive and face tight supply, their own solutions are cheaper to build and run. This trend has made Marvell’s custom silicon intellectual property (IP) and ASIC business one of the winners amid the data-center buildout wave.
Another tailwind is a change in workload structure. As AI application focus moves from model training toward inference, custom chips often deliver better performance-per-task and energy efficiency than general-purpose processors, driving demand upward as well.
This article—“Marvell’s earnings beat expectations, yet its stock drops more than 7%? Google’s $100 billion order won’t ramp until 2029”—first appeared on .
