Google revenue timing wipes 17.4 billion dollars from Marvell's market value
Marvell Technology shares fell more than 8 per cent to 221.60 dollars on Friday, erasing more than 17.4 billion dollars of market value. BNN Bloomberg reported that investors want clarity on when revenue from the Google custom-chip agreement will begin to arrive. Data-centre revenue grew 46 per cent in the latest quarter, but the strong results did not settle the timing question hanging over the agreement.
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A sharp fall after a strong quarter
Marvell Technology shares fell more than 8 per cent to 221.60 dollars in early trading on Friday. BNN Bloomberg reported that the move erased more than 17.4 billion dollars from the company's market value. Investors were focused on when revenue from the custom-chip agreement with Google would begin to appear. Morgan Stanley analysts also said expectations had been higher largely because of that agreement. The market reaction followed an otherwise strong quarter while investors focused on the timetable for future revenue.[1]
Data centres carry most of sales
Marvell reported net revenue of 2.739 billion dollars for the second quarter of fiscal 2027, up 37 per cent from a year earlier. Data-centre revenue grew 46 per cent to 2.171 billion dollars and accounted for 79 per cent of the total. The company set a midpoint of 3.150 billion dollars for third-quarter revenue. Gross margin was 53.1 per cent under GAAP and 58.9 per cent on a non-GAAP basis. Those figures show the support that existing data-centre demand provided during the quarter, apart from the Google agreement.[2]
Long-term value meets a near-term timetable
The company expects revenue growth of about 45 per cent in fiscal 2027 and revenue of about 18 billion dollars in fiscal 2028. BNN Bloomberg reported that the Google custom-chip agreement could generate as much as 120 billion dollars through fiscal 2033. Marvell's own release puts the midpoint of its third-quarter revenue range at 3.150 billion dollars. BNN Bloomberg said investors wanted clarity on when Google revenue would begin. Friday's reaction showed that the near-term revenue timetable carried weight alongside the deal's longer-term size.[1], [2]
