Key Takeaways
- Marvell announces fiscal Q2 FY27 results after market close on Thursday, August 27
- Alphabet’s Google secured a warrant for up to $12.19 billion in Marvell shares tied to a custom chip partnership
- Analysts estimate the Google collaboration could deliver up to $120 billion in total revenue across six years
- Wells Fargo analyst upgraded the price target from $240 to $310 while maintaining a Buy recommendation
- Consensus among analysts stands at Strong Buy with a mean price target of $287.50, suggesting 25% potential gains
Marvell Technology (MRVL) approaches Thursday’s quarterly earnings announcement with substantial momentum behind it. Shares have surged 168% since the start of the year and 213% over the trailing twelve months. With such impressive gains already priced in, market watchers say the quarterly figures themselves may take a backseat to the bigger narrative: the landmark partnership with Google.
Marvell Technology, Inc., MRVL
In an announcement last week, Marvell disclosed that Google, an Alphabet subsidiary, was granted a warrant allowing the purchase of up to 58.97 million Marvell shares at an exercise price of $206.58 each. This translates to a potential $12.19 billion investment in the semiconductor company. The warrant stems from a comprehensive commercial arrangement focused on designing Google’s proprietary chips, particularly its tensor processing units (TPUs).
Following the news, MRVL stock advanced 6.8% throughout the week. However, by Monday’s session, shares retreated 3.8% to close at $228.03 amid broader weakness across the semiconductor sector.
Analyst consensus calls for Q2 FY27 earnings of $0.93 per share, representing 39% growth versus the prior-year period, while revenue is anticipated to climb approximately 35% to reach $2.72 billion.
Wall Street Focuses on Google Collaboration Details
Benchmark’s Cody Acree noted that the Google arrangement will likely dominate investor attention during the earnings call. He anticipates Marvell will initially focus on inference accelerators along with TPU-connected memory, networking infrastructure, and storage solutions, with opportunities for expansion into additional areas. Acree maintained his Buy recommendation with a $275 target price.
B. Riley’s Craig Ellis characterized the partnership as expanding Marvell’s hyperscale customer diversification while strengthening the company’s long-term revenue trajectory. Ellis suggested MRVL has transitioned from being an outsider to becoming a key player in the space.
Stifel’s research team calculated that the commercial arrangement could produce approximately $120 billion in aggregate revenue for Marvell spanning just over six years.
Wells Fargo’s Aaron Rakers, who ranks No. 8 among more than 12,400 analysts on TipRanks, lifted his price objective to $310 from $240 while reaffirming his Buy stance. Rakers projected an additional $2 per share contribution to EPS by FY29 stemming from the agreement, based on roughly $80 billion in cumulative Google-related revenue through FY33. Should Marvell secure the entire $120 billion revenue opportunity, Rakers envisions a scenario where EPS could reach $28-$30 by FY33.
October Guidance and Upcoming Investor Day Draw Attention
J.P. Morgan’s Harlan Sur indicated that market participants will scrutinize management’s guidance for the October quarter, anticipating “strong upside” relative to current projections. Sur also identified the calendar year 2027 and 2028 data center outlook as critical areas for investor consideration.
Rakers pointed to three additional catalysts beyond the Q2 report: the company’s Investor Day event scheduled for October 6, Amazon Trainium chip deployments, and the expansion of external customer relationships.
As Thursday’s earnings approach, MRVL holds a Strong Buy consensus from the analyst community, supported by 24 Buy recommendations and five Hold ratings.
The mean price target of $287.50 implies approximately 25% upside potential from present levels. Marvell shares have climbed 22% during August, marking the strongest monthly gain since June 2026.
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