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Marvell Technology (MRVL) stock is in focus as the chipmaker's fourth quarter results beat analyst estimates while its revenue outlook failed to impress investors, sending shares tumbling during Wednesday's extended trading.
Seana Smith and Madison Mills break down what investors need to know about the earnings print amid a sell-off among chipmaker stocks.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.
Let's take a look at Marvell. It's another stock that we're closely watching here this morning. Marvell plunging after its revenue forecast fell short of the highest estimates. Now, the chipmaker failing to impress investors who were looking for a bigger boost from that continued AI demand. Still, though, the company's fourth-quarter results came in above expectations. Madison Mills is joining me now to break it all down. The degree of the sell-off is a little surprising to me here. The fact that we are down 17% in pre-market, given the fact that it was actually a pretty decent quarter here for the company. The guidance wasn't that bad. Yes, falling just short of the highest estimate, but it did meet some of the bar that have been put out here from Wall Street.
That's that's so well said, Shauna. Just in terms of the context here. And last quarter, remember, they had those record-breaking results bringing the stock to an all-time high. Stifel with a note saying the Marvell report, it just didn't calm nerves about the AI trade. And we've already been seeing that weighing on a lot of these big tech names. Obviously, the likes of Nvidia included in that basket of stocks that have been moving to the downside. And Marvell taking some other names with it this morning, obviously, Nvidia, like I mentioned, but also you've got Broadcom moving to the downside off the back of this print ahead of their earnings results coming out later today. So it it is interesting seeing the degree of the sell-off in these chip names. I wonder if, to your point, it's not that there's anything sinister in this specific print, it's just the negative vibes on chips overall.
Yeah, and that's kind of what Dan Ives was alluding to from Wedbush earlier this morning. Just that it's a bit of an overreaction, maybe, this morning. The degree of the selling that we're seeing kind of caught up with some of those macro headlines that have been very much driving some of the selling action that we've been seeing in the market. So tough timing, maybe, for Marvell too. And it's also interesting Broadcom's also under a bit of pressure here ahead of their results tonight. So we'll see how things shake out there.