Marvell Technology stock drops over 8% on Google-chip revenue doubts
Business
Marvell Technology's stock dropped over 8% on Friday, on course to erase more than $17.4 billion in market value, if the losses hold.
The slide comes as investors worry about when Marvell will actually start seeing money from its Google custom-chip deal.
Marvell's Google deal could generate $120B
The Google deal could generate up to $120 billion in revenue through fiscal 2033. Google-related revenue would contribute much more significantly in fiscal year 2029.
While Marvell forecasts strong revenue growth in the next few years, some analysts are cautious about the wait.
Plus, Marvell trades at a premium compared with rival Broadcom, with a 12-month forward price-to-earnings ratio of 58.41 versus 32.15.