Marvell Stock Dives 8% on Disappointing Fiscal 2028 AI Outlook

Marvell Technology shares plunged nearly 8% shortly after the opening bell on Friday, a sharp reaction to the chipmaker’s fiscal 2028 outlook. This sell-off occurred despite the company reporting robust second-quarter performance, indicating that investor expectations for AI-linked stocks remain exceptionally high.

The stock was trading at $222.35, down 7.91%, by 10:13 a.m. ET, underscoring a clear disconnect between strong current growth and future projections. Investors focused heavily on Marvell’s updated long-term revenue forecast, which, though upgraded, still fell short of their elevated targets.

The Numbers Behind the Drop

• Marvell reported 37% year-on-year revenue growth in Q2.
• Q2 revenue reached $2.7 billion, surpassing its own guidance by $39 million.
• The company now projects fiscal 2028 revenue to grow approximately 50% year-on-year.
• This new projection targets about $18 billion, an increase from its previous forecast of $16.5 billion.

Despite these significant figures, the upgraded fiscal 2028 revenue forecast did not satisfy the market. This disappointment was particularly acute following Marvell’s recently announced partnership with Google, which had fueled even higher expectations.

Investor Disappointment and AI Pressure

Marvell, a critical supplier of chips and networking technology for AI data centers, offered limited specifics regarding its long-term projections. This lack of detailed guidance seemingly disappointed traders who anticipated a more substantial earnings impact from the Google deal, reportedly valued at up to $12.2 billion in shares.

The sharp decline in Marvell’s stock highlights the intense scrutiny and pressure facing companies in the AI-linked chip sector. Even strong growth figures and an upgraded outlook are now being measured against exceptionally high investor expectations, demanding more than just incremental improvements.