Marvell Technology shares fell more than 8% on August 28, 2026, as investors questioned when its Google AI chip deal pays off. The selloff followed fiscal second-quarter 2027 results released on August 27, 2026, in Santa Clara, California, where Marvell Technology, Inc. posted record revenue of $2.74 billion, up 37% year over year, according to Reuters. The Google custom-chip deal, announced August 19, 2026, could generate up to $120 billion in revenue through fiscal 2033. Marvell still lifted its outlook, expecting about 45% revenue growth in fiscal 2027 and roughly $18 billion in fiscal 2028 — its second consecutive raise. The company is a chip designer selling custom silicon and data-center connectivity to hyperscalers.
Reuters reported on August 28, 2026, that Marvell’s shares fell more than 8% to $221.6 in early trading as investors looked beyond solid results for clues on long-term growth. The pressure reflects an AI infrastructure market in which Big Tech capital deployment is projected to top $740 billion in 2026, according to Reuters, raising the bar for every supplier tied to the buildout. Marvell is not guiding the Google program into the near term: Chairman and Chief Executive Matt Murphy said custom revenue targets through fiscal 2028 already reflect some Google-related revenue, with much more in fiscal 2029. That gap suggests the deal was largely priced in, consistent with Morgan Stanley’s view that its contribution sat in prior guidance. The August 19, 2026 arrangement followed an April 20, 2026 Reuters report of talks covering two AI chips.
broadcom absorbs the first shock
CNBC reported on August 19, 2026, that the agreement lets Google buy up to 58,970,907 Marvell shares at $206.58 each — 58,970,907 × $206.58 = $12.18 billion, the roughly $12.2 billion stake — subject to purchase targets through fiscal 2033. Yahoo Finance reported that one tranche unlocks for every $500 million of custom-product revenue, implying $120 billion ÷ $500 million = 240 tranches. The deal cuts into Broadcom Inc., Google’s main custom-chip partner, whose shares fell more than 5% on August 19, 2026, according to Reuters. Broadcom’s Google relationship was expanded in April 2026 and runs through 2031, per CNBC, and Meta paid Broadcom $2.3 billion in 2025 for AI chip design and related services, according to Reuters. Broadcom also holds custom chip deals with OpenAI, and Yahoo Finance estimates its share of the co-design market at 70% against Marvell’s 20%. “Expectations were higher, mostly because of the Google deal,” Morgan Stanley analysts said in a note cited by Reuters.
scale gap and guidance math
Marvell’s co-investor roster is Alphabet Inc.’s Google, with a warrant worth about $12.2 billion, and Nvidia, which invested $2 billion in March 2026, according to CNBC. Broadcom Inc.’s customer roster includes Google, Meta, OpenAI and Anthropic, per Yahoo Finance, which reported Broadcom’s AI semiconductor revenue of $10.8 billion in its fiscal second quarter, up 143% year over year. The structural asymmetry is scale: Broadcom’s AI line alone was $10.8 billion in a quarter, while Marvell’s entire data-center business was $2.17 billion, or 79% of revenue ($2.17 billion ÷ $2.739 billion = 79.2%, per Marvell’s August 27, 2026 release). Guidance step-ups were small: $12.0 billion ÷ $11.5 billion = 1.04× for fiscal 2027 and $18.0 billion ÷ $16.5 billion = 1.09× for fiscal 2028, against the outlook provided on May 27, 2026. Reuters reported two prices for the same session: $221.6 in early trading and $223.1 in premarket, both about 8% lower.
what the warrant means for buyers
For shareholders, the reaction repriced timing rather than the opportunity: the $120 billion ceiling runs from Marvell’s fiscal third quarter 2027 through fiscal 2033, and only about 1.4 million shares become available to Google in the first year, according to Yahoo Finance. For the enterprise AI market, Google adds a second custom-silicon supplier alongside Broadcom, spanning inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute. The template is now common: AMD agreed in October 2025 to supply OpenAI while offering a stake option of roughly 10%, and Nvidia provided a backstop of up to $105 billion for an OpenAI data-center project in August 2026, according to Reuters. Melius Research analysts said the Google deal, Microsoft prospects and AI connectivity upside “could point to some big figures that make $20 in EPS power before the end of the decade look realistic.”
risks sit in timing and terms
Risks cluster on execution and disclosure. The $120 billion figure is not a purchase commitment but the ceiling implied by the warrant’s revenue tranches, exercisable to August 18, 2033, according to Yahoo Finance. The arrangement is not a joint venture; governance structure not disclosed. Antitrust review status not disclosed; no regulator has been named. Cross-border regulatory exposure not disclosed; Marvell uses external foundries, according to CNBC. CNBC reported Goldman Sachs kept a neutral rating, citing a higher valuation than peers and less certainty about adding custom-chip customers, even after calling the quarter an incremental positive. An IPO timeline is not applicable — Marvell trades on Nasdaq as MRVL — and its next disclosure point is an Investor Day in October 2026.
the questions investors are asking
Why did Marvell shares fall after record results? Fiscal second-quarter 2027 revenue of $2.74 billion beat estimates, but the deal announced August 19, 2026 had already reset expectations; Morgan Stanley said its contribution sat in prior guidance. How big is the Google deal? Up to $120 billion through fiscal 2033 — $120 billion ÷ $8.7 billion of trailing revenue = 13.8× Marvell’s last 12 months, according to Yahoo Finance. When does it contribute? On the August 27, 2026 earnings call, Chairman and CEO Matt Murphy described the arrangement, disclosed in an 8-K, as covering programs already in execution, new design wins and potential future programs, with fiscal 2028 targets including only some Google revenue and much more in fiscal 2029. Does it hurt Broadcom? Broadcom Inc. remains Google’s main TPU design partner under an April 2026 expansion through 2031; Morningstar analyst William Kerwin read the deal as Google adding suppliers, not dropping Broadcom. Is the stock expensive? Relative to Broadcom: 58.41× forward earnings versus 32.15×, a premium of 58.41 ÷ 32.15 = 1.8×, per LSEG data cited by Reuters.
Marvell Technology, Inc. fell more than 8% to $221.6 on August 28, 2026, a move that would erase more than $17.4 billion in market value if the losses held. The verified risk is timing: the $120 billion ceiling is a warrant-linked schedule running from fiscal third quarter 2027 through fiscal 2033, not a purchase commitment, and management places its main contribution in fiscal 2029. The August 28, 2026 selloff indicates that delivered near-term quarters, not announced ceilings, are setting Marvell’s price.
| Round | Date | Amount | Lead | Valuation | Co-Investors |
|---|---|---|---|---|---|
| IPO | 1995 | N/A | N/A | N/A | N/A |
| No traditional venture rounds | N/A | N/A | N/A | N/A | N/A |
Frequently Asked Questions
What does Marvell Technology do?
Marvell Technology designs custom silicon and data-center connectivity for hyperscalers. Its products include AI inference accelerators, storage controllers, network interface cards, memory interface controllers, and near-memory compute. The company generates most revenue from data-center end markets, with record Q2 FY2027 sales of $2.74 billion up 37% year over year, and is a major supplier to Google and Broadcom rivals.
Why did Marvell Technology shares fall after record results?
Marvell Technology shares fell more than 8% on August 28, 2026, despite record Q2 revenue of $2.74 billion. Investors had already priced the $120 billion Google custom-chip deal into expectations, and Morgan Stanley noted its contribution was in prior guidance. The selloff reflected disappointment that near-term guidance did not include the full Google payoff, repricing timing over opportunity.
How big is Marvell’s Google AI chip deal?
The Google AI chip deal, announced August 19, 2026, could generate up to $120 billion in revenue through fiscal 2033. It includes a warrant to buy up to 58,970,907 Marvell shares at $206.58 each, worth about $12.2 billion. The revenue potential is tied to purchase targets, with tranches unlocking every $500 million of custom-product revenue.
When does Marvell’s Google deal revenue start contributing?
On the August 27, 2026 earnings call, CEO Matt Murphy said fiscal 2028 targets include some Google-related revenue, with much more in fiscal 2029. The $120 billion ceiling runs from Marvell’s fiscal third quarter 2027 through fiscal 2033. Investors questioned why near-term guidance didn’t reflect the full deal, contributing to the share selloff.
Does the Google deal hurt Broadcom?
Broadcom remains Google’s main TPU design partner under an April 2026 expansion through 2031. Morningstar analyst William Kerwin read the deal as Google adding suppliers, not dropping Broadcom. Broadcom’s shares fell over 5% on the announcement, but its AI semiconductor revenue hit $10.8 billion in Q2 FY2026, up 143% year over year, showing no immediate impact.