Marvell Technology Group LtdShares fell 8% as investors questioned timing of Google AI chip revenue, despite strong results and raised price targets.
Marvell Technology Inc. shares fell about 8% in premarket trading Friday as investors questioned the timing of revenue from its massive Google AI chip partnership, despite strong quarterly results and higher long-term forecasts. The company expects fiscal 2027 revenue to grow about 45% to $12 billion, climbing to roughly $18 billion in fiscal 2028. The custom AI chip agreement with Alphabet's Google could generate as much as $120 billion in sales through fiscal 2033, and Google received warrants that could give it a stake worth roughly $12.2 billion. CEO Matt Murphy said some Google revenue is already included in forecasts through fiscal 2028, but the more meaningful contribution is expected to begin in fiscal 2029, a longer wait that disappointed a market already pricing in enormous AI growth. At least five brokerages raised their price targets following the results, showing Wall Street remains optimistic about Marvell's long-term opportunity.
Marvell Technology Group LtdShares fell 8% as investors questioned timing of Google AI chip revenue, despite strong results and raised price targets.
Alphabet Inc Class CGoogle's custom AI chip deal with Marvell could generate up to $120B in sales, but timing concerns weigh on Marvell's stock.