Marvell Technology (MRVL) shares dropped 10% on Friday, even after announcing record Q2 results that included a revenue of $2.74 billion, up 36% year-over-year, surpassing estimates. Adjusted net income reached $865.9 million, or $0.94 per share, also exceeding expectations.
Marvell’s data-center business, crucial to its growth, generated $2.17 billion—46% more than the previous year—accounting for 79% of total revenue. For Q3, the company projects approximately $3.15 billion in revenue, representing over 50% year-on-year growth.
Despite raising its revenue forecasts for FY27 to $12 billion and FY28 to $18 billion, market expectations were high, contributing to the sell-off. Investors are cautious about margins amid its expanded partnership with Alphabet’s Google, which may not significantly impact revenue until FY29.
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