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
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.
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.
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 .
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.
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.
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Marvell is not looking to marvelous following modest Q1 beat
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:
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