Marvell Technology prepares for August 27 earnings report with high expectations for custom AI chip growth.
Marvell Technology is preparing for its August 27 earnings report, where investors are evaluating if the company can maintain its rapid growth trajectory. The stock has rallied 196% year-to-date, driven by high demand for custom AI chips and a significant partnership with Google. Options traders are currently pricing in a potential 12.4% move in either direction following the report. Wall Street analysts expect a fiscal second-quarter earnings per share of $0.93, representing a 39% year-over-year increase, on revenue of $2.71 billion. The company supplies custom silicon and networking chips for major hyperscalers like Amazon, Microsoft, and Google. Analyst Rick Shafer of Oppenheimer noted that the Google deal validates management's view that custom AI ASIC sales could double next to $4 billion next year. Investors will focus on data-center growth, gross margins, and updated timing for Google-related revenue. Given the stock's significant year-to-date gains, a strong beat and higher guidance are required to justify a year-end bullish outlook.