MARVELL DROPS 8% AFTER A 37% REVENUE QUARTER

🔴 Marvell grew revenue 37% to $2.7 billion, beat its own guidance by $39 million, raised its long-term forecast, and the stock fell 8%.

CNBC reports the drop came in premarket trading after the chipmaker's raised fiscal 2028 outlook failed to clear elevated investor expectations.

The new target: revenue growing about 50% year on year to around $18 billion, up from a previous forecast of $16.5 billion.

That is a big raise. It came with limited detail on how the company gets there, which is what dented sentiment.

The underlying quarter was strong. Data center revenue growth accelerated to 46% year over year. Chairman and CEO Matt Murphy said AI-related bookings remain exceptionally robust and that growth should accelerate further through the rest of fiscal 2027.

Context for the sell-off sits in last week's Google deal. The agreement lets Google buy up to 58.97 million Marvell shares at $206.58 each, worth up to $12.2 billion, subject to purchase targets through fiscal 2033. It covers products working with Google's TPU systems, including AI inference chips, storage controllers and network interface controllers.

Goldman Sachs analysts flagged "high investor expectations" going in, citing robust spending at key customers and the Google relationship. They called the results an "incremental positive" but stayed neutral, noting Marvell trades at a higher valuation than peers with less certainty about adding new custom-chip customers.

The stock is still up 184% this year.

📈 Would you buy an 8% dip in a company growing 37%?

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