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Marvell Technology (NASDAQ:MRVL) just posted solid Q4 numbers$1.817 billion in revenue, up 27% year-over-year, and earnings per share of $0.60, slightly ahead of estimates. The company's AI silicon programs have entered volume production, and its data center revenue surged 78% from last year. Management expects first-quarter revenue to jump over 60% year-over-year, signaling strong demand ahead. With design wins stacking up and interconnect products gaining traction, Marvell is positioning itself for a big fiscal 2026.
But the market had other ideas. Shares tanked 17.3% at 11.47am, as investors expected more upside. Analysts were looking for a bigger beat, particularly from Amazon's Trainium AI chip orders, which came in line rather than exceeding expectations. Marvell stock, is now down 41% from its January high, reflecting the market's unforgiving stance on anything less than blowout results.
Even so, some analysts still see opportunity. If Marvell can hold onto key AI chip contracts, there's potential for upside, especially as AI demand continues to shape the semiconductor landscape. The company remains bullish on long-term growth, but the short-term reaction underscores just how high the bar is for semiconductor stocks right now. All eyes are on Broadcom (NASDAQ:AVGO), set to report earnings next, which could offer more insight into sector trends.
This article first appeared on GuruFocus.