Marvell's Q2 Earnings Could Soar on Google Deal

EarningsM&A · Partnership Impact 4
โดย The Motley Fool·US·Read original
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Marvell Technology heads into its fiscal second-quarter earnings report on August 27 with high market expectations, as the stock has become a bellwether for the AI ecosystem. For the quarter ended August 1, analysts expect revenue of $2.71 billion and earnings per share of $0.93. The bigger catalyst is likely to be management's guidance for fiscal 2027 and 2028, especially after the company announced a $12.2 billion deal with Google on August 19 to develop custom AI chips, which analysts at Stiefel estimate could generate $120 billion in revenue over seven years. The average price target from 44 Wall Street analysts is $266, representing an 11% upside. However, the stock trades at a trailing P/E of nearly 83 and over 24 times sales, leaving little room for error, and the Google deal includes a warrant for nearly 59 million shares, potentially diluting shareholders by nearly 7%.

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Google's $12.2B deal with Marvell for custom AI chips boosts Alphabet's AI infrastructure.

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