Marvell Earnings Are Coming. Google Agreement Likely to Be Biggest Talking Point.

Marvell Technology reports earnings this week and expectations are high. The stock has gained more than 200% over the past 12 months. (Dreamstime)

Key Points

• Marvell Technology is scheduled to report its fiscal 2027 second-quarter earnings after the closing bell Thursday.
• Investors are expected to focus on Marvell’s guidance and its recently announced custom chip development agreement with Google.
• Under the agreement, Google received a warrant to purchase up to 58.97 million Marvell shares, representing a $12.19 billion stake.

Marvell Technology is scheduled to report earnings this week. Wall Street likely will look past the chip designer’s top and bottom line numbers and focus on guidance as well as details about the recently announced deal with Alphabet -owned Google.

Marvell stock declined 3% to $229.64 in premarket trading on Monday after ending Friday down 5.6%. Shares advanced 6.8% last week after Marvell said Google received a warrant to purchase up to 58.97 million shares of common stock at an exercise price of $206.58 a share. That equates to a $12.19 billion stake in Marvell.

Marvell issued the warrant as part of the commercial agreement between the companies on the development of Google’s custom chips. The partnership covers large aspects of Google’s in-demand chips, including its tensor processing units, or TPUs.

Benchmark Equity Research analyst Cody Acree wrote Monday that the deal likely will be the focal point of investor attention when Marvell reports fiscal 2027 second-quarter earnings after the closing Thursday.

“Data-center mix, the October guide and management’s treatment of the new Google relationship should matter more than a small July variance,” Acree wrote.

“We believe Marvell is more likely to begin with selective inference accelerators and TPU-attached memory, networking ,and storage devices,” Acree wrote. “A broader accelerator role can develop without requiring Google to displace either incumbent partner.

Acree added that Marvell’s agreement with Google “materially expands” the chip designer’s long-term custom chip business opportunity and the analyst believes Marvell could get another Google TPU design role in the future.

B. Riley analyst Craig Ellis wrote last week the partnership and the Google warrant broadens Marvell’s “hyperscale diversification while increasing and extending the revenue growth outlook.”

“MRVL is no longer seemingly on the outside looking in but is in the thick of things with the biggest players,” Ellis wrote.

Analysts at Stifel, meanwhile, added last week that Marvell’s agreement with Google “signals progress and growth in spades.” The firm estimated the commercial agreement could be worth about $120 billion in cumulative revenue for Marvell over slightly more than six years.

Along with the partnership with Google, Marvell’s outlook will also be key. J.P. Morgan analyst Harlan Sur wrote Monday that management likely will outline guidance with “strong upside” from “current expectations.”

“Beyond the near-term results and October-quarter guide, we think the most important focus for investors will be how management frames its CY27/CY28 data-center outlook,” Sur wrote. “Our confidence in the breadth and durability of MRVL’s AI data-center growth drivers has strengthened over the past 90-days.”

Acree, more broadly, wrote that the stock setup is “very demanding” heading into earnings. Shares have advanced 22% in August and were pace for their best monthly performance since June 2026, according to Dow Jones Market Data.

Marvell stock has gained 169% this year and has advanced 214% over the past 12 months.

Robust data-center revenue growth from Advanced Micro Devices and Intel along with positive guidance from Coherent and Lumentum have raised the bar for Marvell, according to the analyst.

Acree, however, believes Marvell can meet the challenge. The analyst reiterated a Buy rating with a $275 price target. That price target represents 16% upside from the closing price of $237.04 from Friday.

Write to Kit Norton at kit.norton@barrons.com

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