Marvell Stock Drops 15% as the Artificial Intelligence (AI) Chipmaker's Guidance Disappoints Investors
Shares of Marvell Technology (NASDAQ: MRVL), which makes semiconductors for the data infrastructure market, dropped 14.9% in Wednesday's after-hours trading session following the company's release of its report for the fourth quarter of its fiscal year 2025 (ended Feb. 1). The quarter's revenue and earnings were essentially in line with Wall Street's estimates, as was first-quarter guidance for the top and bottom lines.The main reason for the stock's decline was likely investor disappointment about guidance. Granted, Marvell's outlook was in line with Wall Street's expectations, but that's often not good enough for companies in the artificial intelligence (AI) space, where investors have particularly high expectations. Those high expectations were evident last year, as investors drove Marvell stock to a gain of 83.1% in 2024.Data source: Marvell Technology. *Calculations by author, except for revenue change, which was provided by Marvell. YOY = year over year. GAAP = generally accepted accounting principles. Fiscal Q4 2025 ended Feb. 1.Continue reading
Shares of Marvell Technology (NASDAQ: MRVL), which makes semiconductors for the data infrastructure market, dropped 14.9% in Wednesday's after-hours trading session following the company's release of its report for the fourth quarter of its fiscal year 2025 (ended Feb. 1). The quarter's revenue and earnings were essentially in line with Wall Street's estimates, as was first-quarter guidance for the top and bottom lines.
The main reason for the stock's decline was likely investor disappointment about guidance. Granted, Marvell's outlook was in line with Wall Street's expectations, but that's often not good enough for companies in the artificial intelligence (AI) space, where investors have particularly high expectations. Those high expectations were evident last year, as investors drove Marvell stock to a gain of 83.1% in 2024.
Data source: Marvell Technology. *Calculations by author, except for revenue change, which was provided by Marvell. YOY = year over year. GAAP = generally accepted accounting principles. Fiscal Q4 2025 ended Feb. 1.
