Marvell Beats and Raises, Yet Stock Falls Over 10% on Google Chip Timing

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โดย Insider Monkey·US·Read original
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Marvell Technology delivered a fiscal second-quarter beat and raised its revenue outlook, but the stock plunged more than 10% the next day, prompting Jim Cramer to ask on his September 8 Mad Money episode why investors punished a company whose AI business keeps accelerating. Marvell reported revenue of $2.739 billion, up 37% year over year, and non-GAAP diluted earnings of $0.94 per share, while raising its revenue outlook for both fiscal 2027 and fiscal 2028; CEO Matt Murphy said AI-related bookings remained exceptionally robust and cited broad-based strength across the data center portfolio, including strong Connectivity demand and a significant acceleration in its Custom business beginning in the second half of fiscal 2027. Part of the selloff stemmed from extremely high expectations after the stock's run, and part from new color on Marvell's expanded Google collaboration, under which the company disclosed a performance-based warrant tied to 240 revenue milestones of $500 million each, based on discretionary purchases by Google and its affiliates through fiscal 2033, with full vesting of the performance-based portion requiring $120 billion in cumulative Custom Products revenue. Management said programs tied to the expanded Google opportunity should contribute much more significantly in fiscal 2029, even though some related revenue is already in the nearer-term outlook. The main risk is the pace at which the Custom business ramps, given reliance on a limited number of customers and the need to hit design wins and deployment schedules, and Insider Monkey counted 96 hedge funds holding MRVL at the end of the second quarter, up from 79 in the first, with short interest at approximately 3.2% to 3.8% of float. Marvell's October 6 Investor Day is expected to provide further detail on the Custom business and long-term AI strategy.

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Marvell beat on revenue ($2.739B, +37% YoY) and raised its fiscal 2027/2028 revenue outlook, though the stock fell over 10% on high expectations and Google Custom ramp timing.

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