Marvell Technology delivered another strong quarter, but investors focused less on the earnings beat and more on whether its rapid AI-driven rally had already priced in too much future growth.
MRVL shares fell about 6% in premarket trading Friday after the chipmaker reported fiscal second-quarter revenue of $2.74 billion, up 37% from a year earlier. The results topped Wall Street expectations, while adjusted earnings reached $0.94 per share.
Jim Cramer argued that the selloff reflected valuation and positioning rather than a weak quarter. Marvell had already gained roughly 178% in 2026, leaving little room for results that merely exceeded forecasts rather than dramatically resetting expectations.
Data Center Revenue Jumps 46%
AI infrastructure remains Marvell’s main growth engine. Data center revenue climbed 46% year over year to $2.17 billion, accounting for about 79% of total quarterly sales. Coinpaper’s latest Marvell earnings coverage also highlighted record revenue and accelerating demand for custom silicon and networking products.
Management raised its current-quarter revenue outlook to roughly $3.15 billion and increased its fiscal 2028 sales target to about $18 billion, from $16.5 billion previously. Reuters also noted that Marvell now expects fiscal 2027 revenue of around $12 billion.
Google Deal Adds Long-Term Upside — and Near-Term Questions
Investor attention is also fixed on Marvell’s expanded relationship with Alphabet. The custom AI chip agreement could generate as much as $120 billion in revenue through fiscal 2033, while Google has received warrants that could give it a stake worth roughly $12.2 billion.
The issue is timing. Management indicated that the largest revenue contribution from the Google partnership may not arrive until fiscal 2029, which helped explain why the deal failed to support the stock immediately.
The reaction reflects a broader problem across AI stocks: strong growth is no longer enough when expectations are already extreme. Similar pressure has appeared in other data-center names, while the broader AI infrastructure trade continues to attract investors beyond Nvidia and Broadcom.
Nvidia’s latest earnings showed the same dynamic: revenue surged to $96.2 billion, but investors remain highly sensitive to guidance and valuation.
For Marvell, the fundamentals remain strong. The harder question is whether earnings can keep rising fast enough to justify a stock that has already rerated sharply on the AI boom.
