MarketsMRVLAUG 28, 2026

Marvell prints record $2.74B but slides 8% as Google chip revenue slips to FY2029

MRVL's raised outlook — 45% growth this year, ~$18B in FY2028 — wasn't enough after CEO Matt Murphy said the $120B Google custom-chip deal won't contribute meaningfully until fiscal 2029.

BY HENLEY MARRAST · MARKETS DESK

Marvell Technology posted record fiscal Q2 2027 revenue of $2.739 billion, up 37% year-over-year and $39 million above the midpoint of its own guidance, then watched its stock fall more than 8% to $221.60 in early Friday trading. Reuters put the market-value hit at roughly $17.4 billion. A record print, punished on the tape.

The reason wasn’t the quarter. It was the calendar.

CEO Matt Murphy told analysts that the custom-chip agreement with Google, which Reuters has reported could generate up to $120 billion in revenue through fiscal 2033, will only begin contributing “much more significantly” in fiscal 2029. Morgan Stanley analysts noted, per the Reuters wire, that expectations going in had been elevated “mostly because of the Google deal.” When the timeline stretched, the multiple compressed.

Marvell tried to soften the gap with numbers. Data center revenue grew 46%. Q3 guidance came in at $3.15 billion plus or minus 5%, with non-GAAP EPS of $1.10 plus or minus $0.05. The fiscal 2028 revenue outlook was raised to roughly $18 billion from a prior $16.5 billion, implying about 45% growth this year. Rosenblatt reiterated Buy at a $300 target; Needham raised its target to $300 from $270.

None of it changed the framing. This is the same tension that showed up on Nvidia’s $96.2B quarter earlier this week: AI infrastructure names are being priced against how quickly hyperscaler custom silicon actually lands, not against how big the eventual number looks. Marvell just told the market that the supply-side relief investors have been pricing into 2027 is really a 2029 story.

The read-through for anyone downstream of these chips is unglamorous. If the custom-silicon capacity that would meaningfully lower AI compute costs isn’t scheduled to ramp for another two to three years, the per-token and per-seat pricing of AI software isn’t about to fall either. Marvell’s Investor Day on October 6, 2026 is now the next place that timeline gets defended, or extended again.

Sources

About the author

Henley Marrast

MARKETS DESK

Henley Marrast covers AI-equity flow, accelerator demand, and earnings prints for AI Sheet Report. She leads coverage of the public AI complex from the New York markets desk, with a focus on the daily tape and quarterly results. She has been writing about technology markets for several years.