Particle.news
Download on the App Store
4 ARTICLES
·
46m ago

Marvell Shares Slide After Q3 Revenue Outlook Misses Wall Street Targets

Management flagged flat data-center sales for the quarter, pointing to non-linear growth in its custom AI chips.

Image
Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo

Overview

  • Marvell guided third-quarter revenue to $2.06 billion plus or minus 5%, below the $2.11 billion consensus from LSEG.
  • The stock fell about 11% in premarket trading after the outlook, reflecting sensitivity to AI-chip growth expectations.
  • CEO Matt Murphy said the custom business remains on track but will grow unevenly, with a substantially stronger fourth quarter than the third.
  • Second-quarter revenue was $2.01 billion in line with estimates, while data-center sales rose 3% to $1.49 billion and are expected to be flat sequentially in Q3.
  • Analysts warned that reliance on custom ASICs increases exposure to customer inventory swings and multivendor pressure, with a media report of a possible Microsoft in-house chip delay framed as a potential risk.