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March 6 - Marvell Technology Inc (MRVL, Financial) shares nosedived over 15% in pre-market trading on Thursday, as investor sentiment was hit by concerns over weakening consumer demand and cautious guidance for Q1 fiscal 2026. The semiconductor giant's Q4 fiscal 2025 report revealed an 8% sequential decline in consumer end market revenue, fueling worries that the retail segment could further soften despite robust overall performance, according to a Thursday press release.
Nonetheless, Marvell delivered record revenue of $1.817 billion, up 20% sequentially and 27% year-over-year, driven by a strong data center segment that grew 78% year-over-year to $1.37 billion and surging AI demand. Non-GAAP earnings per share increased 40% sequentially to $0.60. For the full fiscal year, total revenue reached $5.77 billion, while operating cash flow climbed to $1.68 billion, and capital returns through stock repurchases and dividends totaled $933 million.
Investors approach their investments carefully due to market competition and unknown benefits of new technology like co-packaged optics. The company's results show the struggles of having both solid basic growth and uncertain audience targeting issues.
This article first appeared on GuruFocus.