Matt Murphy, CEO of Marvell Technology
Scott Mlyn | CNBC
Marvell Technology The stock plunged more than 17% under the guidance of chipmakers, not reaching some estimates.
Chipmakers said that in the first fiscal quarter, sales were expected to be around $1.88 billion. That’s ahead of $1.87 billion expected by analysts for LSEG votes. However, the outlook is underperformed by some investment expectations at about $2 billion, disappointing investors after the stock surge in 2024.
The result caused people to talk about Marvell and Amazon The web services on Trainium AI chips, and the potential lack of Marvell’s application-specific integrated circuit business.
“Stable numbers miss the high watermark set by the rest of the AMZN supply chain,” Barclays analyst Tom O’Malley wrote in a note after the report. “While the company continues to sound good: the future of their ASIC prospects, AMZN numbers are low lately, which is a real obstacle for the market to punish any imperfect market in AI.”
Marvell is known for creating custom chips and hardware used in data centers, networks, and infrastructure. The company benefits from lifting the industry’s AI boon, but chipmakers are now seeing higher expectations for financial performance.
In the fourth quarter, Marvell reported adjusted earnings per share of 60 cents, respectively, and revenue of $1.82 billion. That’s slightly above 59 cents per share, with revenue forecast of $1.8 billion, according to LSEG.
Data center revenue was $1.37 billion, surpassing the average estimate of $1.36 billion.
– CNBC’s Kristina Partinevelos contributed the report
