Marvell Reports Strong Q2 Earnings Amid AI Growth, Faces Stock Sell-Off
Marvell Technology (MRVL) reported strong fiscal second-quarter results with revenue rising 37% year-over-year to $2.739 billion and non-GAAP earnings per share increasing by 40%. The company exceeded Wall Street expectations and raised its revenue outlook for both fiscal years 2027 and 2028, reflecting robust demand in the AI infrastructure sector. Despite these positive results, Marvell's stock fell more than 6% following the report. This reaction is attributed to high investor expectations rather than poor performance. The company’s shares had surged by 180% over the past year before this decline, leading to a forward P/E ratio of nearly 80—well above industry peers like Broadcom (AVGO). Investors were looking for immediate impact from Marvell's custom-chip partnership with Alphabet (GOOG)(GOOGL), which is expected to contribute more meaningfully in fiscal years beyond 2029. Analysts suggest the sell-off may present a buying opportunity. Morgan Stanley raised its price target on MRVL while maintaining an 'Equal Weight' rating, citing stronger long-term growth prospects for Marvell’s data center business.
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Topics: AI infrastructure semiconductors stock market reaction