Marvell designs and sells semiconductor solutions—particularly custom ASICs and SoCs—for data centers, enterprise and carrier networking, storage, AI inference/acceleration, automotive, industrial and consumer markets.

In the quarter ended May 3, 2025, Marvell reported:

• Revenue: $1.90 billion, up 63 % year-over-year and ahead of the $1.88 billion consensus
• Non-GAAP EPS: $0.62 (vs. $0.61 expected)
• Guidance: $2.00 billion for the current quarter, roughly in line with estimates
  Despite beat­ing on both top and bottom lines, MRVL shares fell ~2.3 % in after-hours trading on the earnings report.

Why MRVL’s stock is under pressure

1. Heavy data-center concentration
   • Data-center sales now make up ~72 % of Marvell’s revenue, up from 41 % in 2023. This exposes the stock to any pullback or insourcing trend among hyperscalers like AWS, Microsoft Azure and Google Cloud, which are increasingly developing their own custom chips Barron's.
2. Postponed investor day & tightened guidance
   • Marvell delayed its planned June 10 investor day to 2026, citing the “dynamic macroeconomic environment,” and narrowed its fiscal Q1 2026 revenue range to $1.875 billion ± 2 % (down from ± 5 %). The lack of near-term visibility spooked investors and drove an ~11 % one-day drop when announced Investopedia.
3. Broader semiconductor sector headwinds
   • The PHLX Semiconductor Index is down ~5.3 % year-to-date amid inventory corrections, tariff worries and economic uncertainty—pressuring even companies that beat estimates .
4. Elevated valuation & profit-taking
   • After strong gains in 2024, Marvell’s forward P/E has compressed from ~41.5× to ~21.0×. That correction, combined with a 42 % drop in the stock so far this year, suggests profit-taking and rotation into other parts of tech Barron's.
5. Investor skepticism on growth runway
   • While custom AI silicon is a long-term opportunity, investors worry about margin pressure on lower-margin bespoke chips and competition from in-house designs at major cloud providers—and recent short interest has ticked higher amid this uncertainty MarketWatch.

Ambarella develops low-power, high-definition video and AI vision system-on-chip solutions used in security cameras, automotive ADAS, robotics, and consumer devices. In the quarter ending April 30, 2025, it posted revenue of $85.9 million and non-GAAP EPS of $0.07, both ahead of Street estimates, yet reported a GAAP loss of $0.58 per share and guided next-quarter revenue only modestly higher (-$86 M to $94 M).

Key reasons AMBA’s stock has been under pressure

• Modest near-term guidance
  Although Q1 beat on the top and bottom lines, Ambarella’s outlook implies only mid-single-digit sequential revenue growth—below investor hopes for a stronger ramp from its new CV5/CV7 AI SoCs.
• Broader semiconductor headwinds
  The PHLX Semiconductor Index is down about 5.3 % year-to-date, reflecting trade-tariff uncertainty, inventory corrections at end markets, and macroeconomic concerns.
• Rising bearish sentiment
  Short interest in AMBA shares climbed 19 % in March to 1.63 million shares (4.1 % of float), signaling growing skepticism among traders.
• Profit-taking after strong rally
  AMBA stock has surged roughly 27 % over the past year, making it vulnerable to position-squaring amid the cautious outlook and sector pullback.

Bottom line:
While Ambarella’s technology roadmap remains promising—especially its edge AI vision chips—near-term revenue guidance, a challenging semiconductor backdrop, and elevated short interest have combined to sap investor enthusiasm and pressure the stock.

Taiwan Semiconductor (TSM), the world's largest chipmaker, delivered a Q4 performance that dazzled both the market and tech enthusiasts. Revenue and earnings surpassed expectations, sending TSM shares to record highs and igniting a rally across the semiconductor sector.

• Despite a 1.5% year-over-year dip in overall revenue, TSM's advanced chip technologies (7-nanometer and below) shone bright, accounting for a whopping 67% of wafer revenue. This surge in cutting-edge chip production propelled net income up 19.3% compared to the prior quarter, exceeding analyst forecasts.
• TSM's success sparked jubilation across the sector. Shares of other semiconductor giants like Qualcomm and NVIDIA surged, pushing major market indices towards all-time highs. This rally reflects investor confidence in the continued demand for advanced chipsets, a crucial component in everything from smartphones to artificial intelligence.
• TSM expects its momentum to continue, forecasting a 14.4% increase in revenue for the first quarter of 2024. This optimistic outlook reinforces the belief that the global chip shortage is easing, paving the way for a period of sustained growth in the semiconductor industry.
• However, some uncertainties linger. Geopolitical tensions and potential supply chain disruptions remain potential risks. Additionally, managing the transition to even more advanced chipmaking technologies like 3-nanometer will be crucial for TSM's long-term success.

Overall, TSM's Q4 report served as a potent shot of confidence for the semiconductor industry. Its stellar performance and optimistic outlook propelled the sector towards new heights, suggesting a bright future for chipmakers that can navigate the evolving technological landscape.