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Marvell Stock Drops 17% Following Muted Revenue Forecast

Despite exceeding AI revenue targets and posting strong Q4 results, Marvell's conservative guidance disappointed investors already cautious about AI spending trends.

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Marvell said sales of its custom AI chips to Amazon will grow into 2027 "and beyond".
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Overview

  • Marvell Technology shares fell by 17% after the company issued in-line guidance for Q1 2025, failing to meet elevated investor expectations.
  • The company reported Q4 earnings of $0.60 per share and revenue of $1.82 billion, both slightly ahead of analyst estimates, with AI-related revenues driving 75% of total sales.
  • Marvell surpassed its fiscal 2025 AI revenue target of $1.5 billion and expects to significantly exceed its $2.5 billion projection for fiscal 2026.
  • Analysts cited broader concerns about slowing AI infrastructure spending and competition from low-cost Chinese AI models as contributing to the stock's decline.
  • Brokerages lowered price targets for Marvell, with the median target now at $130, reflecting a 44% upside from the stock's last closing price.