Shares of Marvell Technology (XNAS-MRVL) fell over 16% on Friday after the company issued weaker than expected guidance, despite reporting strong revenue growth and a return to profitability.
Marvell posted a 58% year over year revenue increase and swung to a profit in its latest earnings report. However, investors reacted to its cautious outlook, particularly in the data center segment, which is central to its AI chip ambitions.
Once seen as a rising competitor to Nvidia in custom AI hardware, Marvell has struggled to secure long-term deals with major clients like Amazon and Microsoft. Analysts noted that while peers like Nvidia and Broadcom expect AI revenue growth of 50–60%, Marvell’s projected 30% suggests it may be losing momentum.