Marvell Technology Reports Today – What Wall Street Wants From AI Chip Maker

Marvell Technology Reports Today – What Wall Street Wants From AI Chip Maker

Marvell Technology stock fell sharply late Wednesday after the company posted slightly better-than-expected earnings.

For its fiscal fourth quarter ending January, the company reported revenue of $1.82 billion versus the Wall Street consensus of $1.8 billion, according to FactSet. Adjusted earnings came in at 60 cents per share, which is above the 59 cents analysts’ consensus estimate.

Guidance was roughly inline. For the current quarter, Marvell guided to a revenue range of $1.875 billion at the midpoint, compared to analysts’ expectations of $1.87 billion.

Marvell CEO Matt Murphy said in the earnings release,

Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products,

“We anticipate strong revenue growth for the full fiscal year.”

Investors were apparently hoping for more. Marvell shares were down 16% in after-hours trading following the earnings report.

Marvell sells a portfolio of chips and hardware products for the data center, 5G infrastructure, networking, and storage markets. It also helps large technology companies design their own AI semiconductors, called ASICS, or application specific integrated circuits.

Last week, Raymond James analyst Srini Pajjuri reaffirmed his Outperform rating on Marvell stock.

He wrote,

We expect the custom AI accelerator market to grow to $50B+ by 2028, and believe that MRVL is well-positioned for significant share given its strong IP, system-level expertise, and execution track record,

Marvell stock had gained 15% over the past 12 months.

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