Marvell plunges nearly 20% as outlook falls short of high expectations

Marvell Technology shares plummeted 19.8% after the chipmaker's guidance fell short of some elevated buyside estimates. For the first fiscal quarter, the chipmaker said it expects sales of about $1.88 billion. That was just ahead of the $1.87 billion expected by analysts polled by LSEG. However, the outlook fell short of some buyside expectations calling for around $2 billion in revenue, disappointing investors after the stock soared 83% in 2024. The results fueled some concerns about Marvell's partnership with Amazon Web Services on its Trainium AI chip, and the potential lack of upside for Marvell's custom application-specific integrated circuits business. "Solid numbers missed the high watermark set by the rest of the AMZN supply chain," wrote Barclays analyst Tom O'Malley in a note after the report. "While the company continues to sound good re: the future of their ASIC prospects, the AMZN numbers near term are a bit lower, which is the real sticking point for a market punishing ... Read full article.