Marvell Technology, Inc. (NASDAQ: MRVL) is a semiconductor company specializing in data-infrastructure solutions. Its products include custom chips, data-center connectivity technology, networking solutions, and optical interconnect products used in artificial-intelligence and cloud-computing infrastructure.
On August 28, 2026, Morgan Stanley maintained its Equal Weight rating on Marvell and raised its price target to $246 from $224. The firm described Marvell’s quarter as solid but noted that its results and near-term outlook were generally consistent with previous management commentary. Morgan Stanley said expectations had been elevated by Marvell’s recently announced relationship with Google, even though the customer’s expected contribution was already largely reflected in the company’s earlier guidance.
Marvell reported record revenue of $2.739 billion for the second quarter of fiscal 2027, representing an increase of 37% year over year and 13% sequentially. Revenue also came in approximately $39 million above the midpoint of management’s previous guidance.
Growth was led by Marvell’s Data Center business, where revenue climbed 46% year over year and 18% sequentially to $2.172 billion. The segment accounted for 79% of the company’s total quarterly revenue, compared with 74% one year earlier.
Marvell’s profitability also improved. Non-GAAP diluted EPS reached $0.94, up 40% from $0.67 in the corresponding quarter last year. GAAP diluted EPS was $0.33, while the company’s non-GAAP operating margin increased to 36.6% from 34.8% a year earlier.
The company also raised its longer-term outlook. Marvell now expects fiscal 2027 revenue of approximately $12 billion, compared with its previous forecast of about $11.5 billion. It increased its fiscal 2028 revenue forecast to approximately $18 billion from $16.5 billion.
Despite these strong results, Marvell shares fell after the earnings release. The decline primarily reflected concerns about the timing of incremental revenue from the company’s custom-chip relationship with Google. Management indicated that some Google-related revenue was already included in its forecasts through fiscal 2028, while a more significant contribution is expected beginning in fiscal 2029.
Customer concentration remains a legitimate business risk because Marvell depends on a relatively small number of major customers and generates a growing portion of its revenue from the data-center market. However, the immediate post-earnings selloff was more directly connected to elevated expectations and uncertainty about the near-term financial impact of the Google agreement.
