Shares of chip designer Marvell Technology fell over 8% to $221.6, wiping out more than $17.4 billion in market capitalization as investors sought detailed timing on revenue contributions from its massive custom silicon partnership with Google.
📌 Key Numbers & Financial Projections:
- $120 Billion Deal Potential: Long-term custom chip partnership with Google through fiscal year 2033.
- $18 Billion Revenue Target: Marvell projects annual revenue to reach ~$18B in fiscal year 2028, driven by ~45% revenue growth in fiscal 2027.
- $17.4 Billion Market Cap Loss: Erased in early Friday trading following the selloff.
- $275 Median Price Target: Wall Street analysts maintain a bullish outlook, with at least 8 brokerages raising targets.
- 58.41x Forward P/E Valuation: Marvell trades at a notable premium compared to rival Broadcom (32.15x).
💡 Market Context & Long-Term Earnings Power:
- Google Revenue Timeline: CEO Matt Murphy clarified that Google custom silicon gains are already factored into guidance through FY2028, with significantly larger contributions arriving in FY2029.
- $20 EPS Potential: Analysts at Melius Research note that custom chip momentum with Google, Microsoft, and AI connectivity platforms positions Marvell to realistically reach $20 in EPS power before the decade ends.