Data-center revenue hit a record, overall sales grew 37% and management raised its full-year outlook. None of it was enough to stop shares from sliding roughly 9% to 10% before Friday's open.
Marvell Technology reported second-quarter revenue of $2.739 billion, a company record and up 37% from a year earlier, beating the roughly $2.71 billion analysts expected. Adjusted earnings of 94 cents a share also topped the consensus estimate of 93 cents. Data-center revenue, the company's largest and most closely watched segment, hit a record $2.17 billion, up 46% year over year. Management raised full-year revenue guidance to $12 billion and guided to more than 50% year-over-year growth in the current quarter, characterizing AI-related bookings as "exceptionally robust."
Shares fell anyway. Using Wednesday's close of $245.11 as a clean pre-earnings baseline, Marvell's stock traded down roughly 9% to 10% in Friday's premarket session, extending a decline that began even before the print: Thursday's regular session had already slipped 1.5% ahead of the release. The premarket read should be treated as directional rather than final until the market opens, given the wider spreads typical of early trading, but the direction itself is unambiguous against a quarter that beat on every headline metric.
The selloff leaves investors focused on two pressure points beyond the headline beat. One is Marvell's custom-silicon relationship with Alphabet's Google, where key terms remain undisclosed. The other is valuation: at roughly 60 times forward adjusted earnings and closer to 180 times on a GAAP basis, the stock entered the quarter with little room for disappointment, while continued equity issuance adds dilution risk.
The result is a different setup from a straightforward earnings miss. Marvell delivered record revenue and raised guidance, but the market is still demanding more clarity from a stock carrying a premium valuation and an unresolved question around a marquee AI relationship.
What happens next depends less on this quarter's numbers, which are now fixed, than on whether the Google partnership's actual terms get clarified in the coming weeks, and on how the stock trades once Friday's full session provides a cleaner read than premarket liquidity allows.