Marvell shares tumble 8% as outlook underwhelms despite 37% revenue growth

Marvell Technology shares fell 8% in premarket trading despite a second-quarter revenue beat, as its raised fiscal 2028 outlook failed to meet investors' elevated expectations.

The chipmaker said it now expects revenue to grow about 50% year-on-year to around $18 billion, higher than its previous forecast of $16.5 billion.

Revenue rose 37% to $2.7 billion in its fiscal second quarter. That came in $39 million above the company guidance provided in May.

Marvell, which makes networking, connectivity and custom chips used in AI data centers, offered limited detail on its fiscal 2028 outlook, dampening investor sentiment after hopes that a Google partnership worth up to $12.2 billion in shares would further boost earnings.

The stock was last trading down 8%. It's up 184% this year, buoyed by demand for its products used in AI infrastructure.

Marvell's Chairman and CEO Matt Murphy said the results were driven by continued strong demand across the company's data center portfolio, where revenue growth accelerated to 46% year over year.

"AI-related bookings remain exceptionally robust, and we expect our revenue growth to accelerate further through the remainder of fiscal 2027," Murphy added.

The Google partnership, announced last week, allows the tech giant to buy up to 58.97 million Marvell shares at $206.58 each, subject to purchase targets through fiscal 2033.