Marvell Technology Shares Drop Despite Strong Q2 Earnings and Raised Revenue Outlook
Marvell Technology (NASDAQ:MRVL) reported better-than-expected fiscal second-quarter results, with revenue rising 37% year-over-year to $2.739 billion and non-GAAP earnings per share reaching $0.94. The company also raised its full-year FY2027 revenue outlook to approximately $12 billion and set a target of around $18 billion for FY2028, citing strong demand in the data center segment. Despite these positive results, Marvell's shares fell 7.9% in pre-market trading as investors appeared disappointed with what they viewed as an underwhelming long-term revenue increase following its new AI chip agreement with Google. The company also guided for a sequential decline in Q3 gross margin due to lower-margin custom AI silicon sales. The broader technology market remained subdued, with the Nasdaq down 0.4% and semiconductor peers like Broadcom and Micron trading flat or slightly lower.
Topics: AI Chips Data Centre Growth Earnings Stock Price Movement