Marvell Technology will report earnings this week. Instead of focusing only on the headline numbers, Wall Street is expected to pay more attention to the company’s new partnership with Alphabet’s Google and any updates on future guidance.
Marvell shares dropped in premarket trading Monday, continuing Friday’s losses. This comes after the stock rose nearly 7% the previous week when Marvell announced that Google received a warrant to buy up to 58.97 million shares at $206.58 each, a potential stake worth about $12.19 billion.
Marvell issued the warrant as part of a larger agreement with Google to develop custom chips, including tensor processing units.
Benchmark Equity Research said the Google deal will likely be the main focus for investors when Marvell reports its second-quarter results after Thursday’s close. They believe that data-center revenue, future guidance, and how management describes the new Google partnership will be more important than small changes in short-term results. Benchmark expects Marvell to start with selective inference accelerators and TPU-attached memory, networking, and storage parts. Over time, Marvell could take on a bigger role in accelerators without Google needing to replace its current chip partners. Benchmark also said the Google partnership greatly increases Marvell’s long-term custom chip opportunities and that Marvell could take on more Google TPU design work in the future.
B. Riley agreed last week, saying the partnership and warrant help Marvell diversify across major cloud customers and improve its revenue growth outlook. They also noted that Marvell now seems to be one of the industry’s top players, not just on the sidelines. The Google agreement is described as a strong signal of progress and growth, with the commercial relationship estimated to generate roughly $120 billion in cumulative revenue for Marvell over just over six years.
Besides the Google partnership, investors will pay close attention to Marvell’s guidance. J.P. Morgan said management will likely give an outlook that is better than current expectations. They added that investors are especially interested in how Marvell describes its data-center plans for 2027 and 2028, as confidence in the company’s AI growth drivers has grown in recent months.
Benchmark also warned that expectations for Marvell’s report are high. Shares have climbed sharply in August, putting the stock on track for its best month since June 2026, according to Dow Jones Market Data. Marvell has also posted strong gains this year and over the past 12 months.
Benchmark said that strong data-center revenue from Advanced Micro Devices and Intel, plus positive guidance from Coherent and Lumentum, has set high expectations for Marvell’s results. Still, they believe Marvell is ready to meet this challenge and remain positive on the stock, expecting its price to rise from Friday’s close.
