Overview

• Q2 results showed adjusted EPS of $0.67 and revenue of $2.01 billion, roughly in line with expectations despite a 58% year-over-year gain.
• Core data-center revenue reached $1.49 billion, missing estimates, and Q3 revenue guidance of about $2.06 billion fell short of the roughly $2.11 billion consensus.
• CEO Matt Murphy signaled flat data-center sales in Q3 and described growth as non-linear with a substantially stronger Q4 expected.
• Shares dropped about 18% on Aug. 29 and are down roughly 43% year to date, reflecting concern over near-term execution and visibility.
• Analysts trimmed views following the report: Citi cut its target to $92 and kept a buy rating, Bank of America downgraded to neutral with a $78 target, HSBC flagged limited clarity on 2026 cloud capex, and Rosenblatt lowered its target to $95 citing shipment timing shifts and an auto divestiture while highlighting a broad ASIC pipeline; Citi also noted no change to AWS Trainium 3 timing under Marvell’s five-year AWS partnership, as Bank of America pointed to uncertainty around Microsoft’s Maia timeline.