Marvell Technology's stock price fell by 10.28% due to market misinterpretation of its custom chip agreement with Google, which is expected to generate $120 billion in revenue.
Marvell Technology announced its Q2 FY2027 earnings, with revenue reaching $2.739 billion, a 36.55% year-over-year increase, and non-GAAP EPS at $0.94. The company disclosed that Google will receive warrants to acquire up to 7% of Marvell's shares upon achieving procurement milestones, which are expected to generate up to $120 billion in custom revenue for Marvell by FY2033. Despite the better-than-expected earnings and generally positive analyst outlook, the market misinterpreted the dilutive effect of the Google warrants, leading to a decline in stock price.
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