Marvell raises annual forecasts, but shares fall as Google deal questions linger

Marvell Technology raised its annual revenue forecasts, but its shares fell over 6% in after-hours trading. The company signed a significant AI chip agreement with Google, expected to generate $120 billion in revenue through fiscal 2033. However, Marvell failed to provide a meaningful increase in its long-term revenue outlook, disappointing investors.

CEO Matt Murphy stated that Google-related revenue would contribute more in fiscal 2029, but he did not provide a new target, deferring details to an investor day on October 6. Analysts question whether expectations around Marvell's custom AI accelerator projects are getting ahead of themselves, given the recent Broadcom and OpenAI work on Jalapeno.