The revenue contribution from Google's deal was already largely priced into Marvell's prior guidance, limiting near-term upside surprises despite the deal's headline value.
Too little corroboration in the last 3 days to call a trend (1 article). Watching for it to gain traction.
The revenue contribution from Google's custom chip deal with Marvell was already substantially incorporated into the supplier's prior guidance, meaning that despite the headline value of the agreement, near-term upside surprises are limited as investor focus has shifted to timing of actual revenue recognition.
When major supply contracts are already reflected in guidance, the market's ability to generate positive surprises from deal announcements diminishes, which can reduce the duration of positive sentiment and shift investor focus to execution risk and timing uncertainty rather than incremental opportunity.
"Investor focus on the timing of the deal's revenue contribution, however, eclipsed the company's higher revenue forecasts for fiscal years 2027 and 2028. 'Expectations were higher, mostly because of the Google deal,' analysts at Morgan Stanley said, adding that its contribution was already largely reflected in the company's prior guidance."