Marvell stock slumps 8% as investors weigh Google deal timing

Marvell Technology posted fiscal second-quarter earnings that exceeded expectations after the market closed Thursday, yet shares fell steeply as traders concentrated on when revenue from the company's recently announced Google AI-chip deal would materialize.

• Adjusted EPS came in at $0.94, versus the expected $0.92
• Revenue reached $2.739 billion, beating the $2.71 billion forecast, up 37% year over year and 13% sequentially
• Data-center revenue hit $2.172 billion, a 46% annual increase and 18% quarter over quarter
• Adjusted gross margin was 58.9%
• Operating cash flow totaled $605.5 million
• Q3 revenue guidance: $3.15 billion, plus or minus 5%
• Q3 adjusted EPS guidance: $1.10, plus or minus $0.05
• Q3 adjusted gross-margin guidance: 57.5% to 58.5%

Marvell also raised its longer-term forecasts. It now expects fiscal 2027 revenue of roughly $12 billion, implying growth of about 45%, up from the earlier $11.5 billion target. For fiscal 2028, revenue is projected at approximately $18 billion, compared with the prior $16.5 billion outlook. According to management, AI-related bookings remain exceptionally strong, with custom-chip revenue set to accelerate in the second half of the current fiscal year.

Marvell delivered solid numbers and upgraded its guidance, yet investors were hoping for a larger and quicker return from the Google deal. The selloff appears not to be a repudiation of Marvell's AI expansion narrative but rather a recalibration of what had been very high expectations.

From a technical standpoint, the post-earnings drop brought the price to a low of $219.10, following a session peak of $228.88. On the hourly chart, the bounce after the gap-down paused near the ascending 100-hour moving average at $229.66, which kept selling pressure intact and led to the later decline to the day's low.

Thus far, the fall has stayed above the climbing 200-hour moving average at $214.29. Beneath that, the 100-day moving average at $211.34 offers additional support.

For buyers to regain more control, the price needs to climb back above the 100-hour moving average at $229.66. Immediately above that lies the breached 38.2% Fibonacci retracement of the rally from the February 2026 trough to the June 2026 peak at $230.70. A sustained move above both thresholds would provide relief and could open the door for a broader upward rotation.

On the other hand, a drop under the 200-hour moving average at $214.29—and subsequently the 100-day moving average at $211.34—would reinforce the bearish technical bias and hand more power to sellers.

With the price between those two technical levels, traders can assess the reaction at these points. The idea is that traders can define and cap risk against a level they or the market considers credible. If the price responds to those levels, one can infer that the market trusts them. That puts us in a neutral zone between moving averages and retracement levels.