Marvell Technology (NASDAQ: MRVL) will post its second-quarter fiscal 2027 results after Thursday’s market close. Investors are watching closely because expectations are high following strong recent results, a major expansion of its partnership with Google, and a strong recovery.
Wall Street expects Marvell to report earnings of $0.93 per share on revenue of about $2.71 billion. The company has a strong track record heading into the report, beating both earnings and revenue estimates in seven of the past eight quarters.
Strong Growth in the Data Center
Marvell’s Data Center business continues to be the company’s biggest source of revenue. In the first quarter of fiscal 2027, Data Center accounted for 76% of total revenue.
MRVL reported record first-quarter revenue of $2.42 billion, up 28% from the same period a year earlier. Non-GAAP earnings came in at $0.80 per share, beating Wall Street expectations.
The company is benefiting from the huge amount of money being spent on artificial intelligence infrastructure. Cloud companies such as Google, Amazon and Microsoft are investing heavily in AI systems, creating growing demand for the specialized chips and networking technology that Marvell provides.
Optical Business Could Be a Major Growth Driver
While MRVL is well known for its custom AI chips, another part of the business is becoming increasingly important: optical interconnects. Optical interconnects help move substantial amounts of data between processors, memory, and networking equipment. This is especially important for AI data centers, where thousands of chips need to communicate quickly.
Marvell expects its optical interconnect revenue to grow by more than 70% year over year in fiscal 2027. That growth rate would be faster than the company’s custom AI silicon business.
This gives the company another way to benefit from the continued expansion of AI infrastructure.
Google Partnership Gets Much Bigger
One of the biggest recent developments for Marvell was the expansion of its long-term agreement with Google. Under the expanded agreement, MRVL will work with Google on several types of custom chips, including AI inference accelerators, storage controllers, networking chips, and memory interface controllers. The agreement is expected to support Google’s AI chip ecosystem through 2033.
The deal is important because it strengthens Marvell’s position with some of the world’s biggest technology companies. MRVL already works with other major hyperscalers, including Amazon and Microsoft.
Supply Could Become an Issue
Strong AI demand is positive for MRVL, but it also creates a potential challenge: making sure the company has enough supply to meet customer demand. Marvell plans to make approximately $1 billion in supply prepayments during fiscal 2027. The goal is to secure enough production capacity and reduce the risk of supply shortages limiting AI-related shipments.
While spending that much money upfront can affect cash flow, it also shows how seriously Marvell is preparing for continued demand from AI customers.
In addition, analysts remain generally optimistic about Marvell.
JPMorgan (NYSE: JPM) analyst Harlan Sur recently reiterated an Overweight rating on the stock. He believes the expanded Google partnership could provide upside to current revenue and earnings estimates as spending on custom AI infrastructure continues to increase.
Moving Forward
And, of course, the headline numbers will be important, but investors will likely pay even more attention to Marvell’s outlook.
The company needs to show that AI demand is continuing to translate into higher revenue and earnings. Investors will also be watching for updates on the Google partnership, custom AI chip demand, optical interconnect growth and the company’s ability to secure enough supply.
If MRVL reports another strong quarter and gives an upbeat forecast, the results could further support the recent rally in the stock.
For now, Marvell appears well positioned to benefit from the long-term growth of AI infrastructure. Its relationships with Google, Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT), combined with its custom silicon and rapidly growing optical business, give the company several opportunities to expand.
