Shares shifted sharply lower on August 28 after Marvell Technology delivered a quarter that topped every estimate but failed to satisfy investors who wanted the company's blockbuster Google AI-chip partnership to start boosting results now, not three years from now. The stock fell roughly 8% in premarket trading to $223.10 as concerns about the deal's revenue timing overshadowed better-than-expected results. For holders of the CEDEAR (MRVLD.BA), trading at $16.66 (−8.06%), the sell-off underscores a simple tension: Marvell's future is enormous, but the present isn't growing fast enough for a stock that had already nearly tripled this year.

  • A Beat That Wasn't Big Enough

Q2 fiscal 2027 revenue hit a record $2.739 billion, up 37% year-over-year, driven by data center revenue growth accelerating to 46%.

Adjusted earnings came in at $0.94 per share versus consensus of $0.92. Solid numbers — but those upgrades were not enough for a stock that had already gained about 184% in 2026.

  • Google's $120 Billion Promise Has Fine Print

If every tranche were earned, Marvell would generate about $120 billion in qualifying Google revenue — but that figure is a vesting threshold, not a spending commitment.

JPMorgan analyst Harlan Sur pressed management on why this massive program wasn't showing up more clearly in fiscal 2028, noting Marvell still appeared to guide toward only $5–6 billion in custom-chip revenue for calendar 2027.

CEO Matt Murphy responded that meaningful Google contribution arrives in fiscal 2029.

  • Raised Forecasts Still Couldn't Clear the Bar

Marvell increased its full-year FY2027 revenue outlook to approximately $12 billion and set FY2028 at around $18 billion.

Morgan Stanley noted that "expectations were higher, mostly because of the Google deal," and that its contribution was already largely reflected in prior guidance. In short, the market had priced in a bigger upgrade than it got.

  • Wall Street Still Sees Upside — If You Can Wait

At least five brokerages raised their price targets, with the median at $275, implying roughly 14% upside from Thursday's close.

Melius Research argued the Google deal, potential Microsoft work, and AI networking growth "could point to some big figures that make $20 in EPS power before the end of the decade look realistic." That's a compelling long-range case — but today's sell-off shows the market wants receipts, not roadmaps.