- Marvell shares fell nearly 8% after opening bell on concerns over fiscal 2028 outlook
- Stock dropped to $222.35 despite 37% revenue growth to $2.7 billion in Q2
- Fiscal 2028 revenue forecast raised to $18 billion from $16.5 billion earlier
Marvell Technology shares came under heavy selling pressure shortly after Friday's opening bell, falling nearly 8% as investors remained unimpressed by the chipmaker's fiscal 2028 outlook.
The stock was down 7.91% at $222.35 at 10:13 a.m. ET, according to real-time market data. Marvell shares had risen sharply this year, gaining around 184%, driven by strong demand for its networking, connectivity and custom chips used in artificial intelligence data centres.
The sell-off came despite a strong second-quarter performance. Marvell reported 37% year-on-year growth in revenue to $2.7 billion, beating its own guidance by $39 million.
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The bigger concern for investors was the company's outlook. Marvell said it now expects fiscal 2028 revenue to grow about 50% year-on-year to roughly $18 billion, up from its earlier forecast of $16.5 billion.
However, the upgraded outlook still failed to satisfy investors, with analysts pointing to elevated expectations surrounding the company following its recently announced partnership with Google.
Marvell, which supplies chips and networking technology for AI data centres, provided limited details on its fiscal 2028 projections. That appears to have disappointed traders who were expecting the Google deal, reportedly worth up to $12.2 billion in shares, to translate into stronger earnings growth.
The sharp decline highlights the pressure on AI-linked chip stocks, where strong headline growth is increasingly being judged against very high investor expectations.
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