Marvell shares tumble 8% as outlook underwhelms despite 37% revenue growth
· Business · CNBC
Marvell Technology shares dropped 8% in premarket trading after the company's fiscal 2028 outlook failed to meet investor expectations. The chipmaker reported a 37% year-on-year revenue increase to $2.7 billion for the second quarter, exceeding its own guidance by $39 million. While the company raised its fiscal 2028 revenue forecast to approximately $18 billion, the update lacked the specific details required to satisfy market sentiment. Investors had anticipated a larger impact from a recently announced $12.2 billion partnership with Google. CEO Matt Murphy noted that data center revenue growth reached 46%, driven by robust demand for AI infrastructure products.
Why it matters
The stock decline reflects high market sensitivity to AI-related growth projections, specifically impacting investors tracking the chipmaker's long-term partnership with Google.
Read the original report — CNBC
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