Chipmakers are finding that good earnings aren't enough to please Wall Street

More than two years into the generative artificial intelligence boom, Wall Street is setting an increasingly high bar for chipmakers. When it comes to earnings reports — most recently from Marvell Technology — good isn't good enough. That's because investors previously poured into the companies making the infrastructure and devices at the heart of the AI economy, bidding the stocks up to historically high levels. They're demanding results. Marvell shares plummeted 20% on Thursday, their steepest slump since 2001, after guidance fell short of some elevated estimates. The company's revenue forecast as well as its results for the latest quarter were all ahead of the average analyst estimate, according to LSEG, but Wall Street wanted more after the stock soared 83% in 2024. "While Marvell reported a small beat and raise, the guide was definitively below buyside expectations," analysts at Cantor wrote in a report following the results. Nvidia suffered a similar fate in late February, w ... Read full article.