Marvell Technology Reports Record Revenue Amid Google AI Deal

Marvell Technology reported record second-quarter revenue of $2.739 billion, a 37 percent increase year over year that exceeded analyst estimates. The growth was primarily fueled by the data center segment, which rose 46 percent to $2.17 billion and now accounts for 79 percent of the company's total revenue. Adjusted non-GAAP earnings per share reached $0.94, while GAAP earnings rose to $308 million, or $0.33 per share, up from $194.8 million in the previous year.

Management raised its revenue outlook for fiscal 2027 and 2028, forecasting third-quarter revenue of $3.15 billion and adjusted profit of $1.10 per share. CEO Matt Murphy stated that AI-related bookings remain "exceptionally robust," with growth expected to accelerate through the remainder of the fiscal year. Despite beating market expectations, shares fell nearly 3 percent in extended trading as the outlook failed to satisfy high investor expectations following a significant AI-fueled rally.

The company recently expanded a strategic custom silicon partnership with Google that could generate $120 billion in revenue through fiscal 2033. As part of the deal, Google received a warrant to acquire up to 7 percent of Marvell shares, potentially representing an investment stake of $12.2 billion. This shift toward custom silicon allows Big Tech firms to find cheaper alternatives to costly and supply-constrained Nvidia processors while positioning Marvell to better compete with rival Broadcom.