Marvell Drops 8% as $18 Billion Fiscal 2028 Outlook Misses Lofty Expectations
Updated
Updated · CNBC · Aug 28
Marvell Drops 8% as $18 Billion Fiscal 2028 Outlook Misses Lofty Expectations
3 articles · Updated · CNBC · Aug 28
Summary
Marvell shares fell 8% in premarket trading even after fiscal second-quarter revenue rose 37% to $2.7 billion, topping the company’s May guidance by $39 million.
The selloff centered on guidance: Marvell lifted its fiscal 2028 revenue target to about $18 billion from $16.5 billion, but offered limited detail and failed to satisfy investors primed for a bigger AI-driven boost.
Data center revenue growth accelerated to 46%, and CEO Matt Murphy said AI-related bookings remain exceptionally robust, with revenue growth expected to speed up through the rest of fiscal 2027.
Last week’s Google deal had helped lift expectations further, giving the company a path to sell products tied to TPU systems and letting Google buy up to 58.97 million shares worth as much as $12.2 billion through fiscal 2033.
Goldman Sachs called the quarter an incremental positive but kept a neutral rating, citing Marvell’s richer valuation versus peers and less certainty around winning additional custom-chip customers.