The Zhitong Finance App learned that Mewell Technology (MRVL.US) released its financial report for the second quarter of fiscal year 2026 after the market on Thursday. The adjusted earnings per share and revenue were slightly higher than market expectations. At the same time, the guidance for the third fiscal quarter was also better than analysts' forecasts. However, the stock still experienced a sharp decline during the extended trading period. As of press release, the chipmaker's after-market share price fell more than 7%. Maywell Technology (MRVL.US) released its financial report for the second quarter of fiscal year 2026 after the market on Thursday. The adjusted earnings per share and revenue were slightly higher than market expectations, while the fiscal third quarter guidance was also better than analysts' predictions.
Recently, Maywell Technology and Google reached a major AI chip cooperation, but the company's long-term revenue outlook failed to provide a significant increase. Market concerns about when Google's order revenue will be fulfilled overshadowed the favorable revisions to the 2027 and 2028 fiscal year revenue forecasts, leaving investors who expected the deal to accelerate performance growth. Since this year, driven by the AI wave, the stock has accumulated a cumulative increase of nearly three times.
According to financial data, the company's second-fiscal quarter revenue increased 37% year-on-year to US$2.74 billion, exceeding market expectations of US$2.71 billion; adjusted earnings per share were 94 cents, which was also higher than the forecast of 92 cents.
For the current fiscal quarter, the company expects adjusted earnings per share of $1.10, with revenue of approximately $3.15 billion, compared to Wall Street's previous expectations of $1.08 and $3.04 billion, respectively. For the same period last year, the company's adjusted earnings per share were 76 cents, with revenue of US$2.07 billion.
The company's CEO Matt Murphy said in a press release that the second-quarter results “benefited from continued strong demand for the data center product portfolio,” and the business segment's revenue growth rate accelerated to 46% year over year. He further pointed out that AI-related orders are still extremely strong, and revenue growth is expected to accelerate further in the remaining 2027 fiscal year. He also said that based on the current trend, the company once again raised its revenue outlook for the 2027 and 2028 fiscal years, which is higher than the guidance given in the previous quarter.
Last week, Maywell Technology reached a customized chip agreement with Google, a subsidiary of Alphabet. It is expected to bring in revenue of about 120 billion US dollars by fiscal year 2033, while Google will become one of the company's major shareholders with a maximum shareholding of 12.2 billion US dollars.
At the performance call, when analysts asked why Google-related revenue was difficult to make a more substantial contribution in FY2028, CEO Matt Murphy said that the company's custom chip revenue target up to the 2028 fiscal year already included part of this revenue, adding that it will increase more significantly in the 2029 fiscal year. He further pointed out that revenue from the custom chip business will more than double next year, and that there is an “upward trend” in the “2029 fiscal year” target of “exceeding 10 billion US dollars”, but he declined to give new targets. Specific guidelines are left to be disclosed on October 6.
Bob O'Donnell, chief analyst at Technalysis Research, said, “The market's expectations for customized AI accelerator projects are already at an extremely high level, especially after news broke recently that Broadcom (AVGO.US) and OpenAI are jointly developing the 'Jalapeno' project. Obviously, expectations are ahead of reality, making it difficult for most companies other than NVDA.US (NVDA.US) to meet the standards — even Nvidia's stock price dropped for a while after the financial report before releasing a major annual forecast.”
In order to reduce their dependence on Nvidia's expensive and supply-limited processors, large technology companies have increased their investment in self-developed chips, thereby driving a surge in demand for Maywell Technology's customized silicon wafers business, making it one of the main beneficiaries of the wave of data center expansion. At the same time, as AI applications shift from model training to inference deployment, custom chips have advantages over general-purpose processors in terms of performance and energy efficiency, further boosting related demand.
Based on this, Maywell Technology raised its revenue growth forecast for the 2027 fiscal year to about 45%, corresponding to a revenue scale of about US$12 billion, higher than the previous forecast of about US$11.5 billion; at the same time, it raised its revenue forecast for the 2028 fiscal year from about US$16.5 billion to about US$18 billion, mainly due to increased contributions to the data center business.