Marvell Technology late Wednesday narrowly beat estimates for its fiscal fourth quarter and guided modestly higher for the current quarter. MRVL stock plunged in extended trading.
The Santa Clara, Calif.-based chipmaker earned an adjusted 60 cents a share on sales of $1.82 billion in the quarter ended Feb. 1. Analysts polled by FactSet had expected Marvell earnings of 59 cents a share on sales of $1.8 billion. On a year-over-year basis, Marvell earnings rose 30% while sales increased 27%.
In after-hours trading on the stock market today, MRVL stock plummeted more than 16% to 75.75. During the regular session Wednesday, MRVL stock rose 2.1% to close at 90.14.
For the current quarter, Marvell forecast earning an adjusted 61 cents a share on sales of $1.875 billion. Analysts were modeling earnings of 60 cents a share on sales of $1.865 billion in fiscal Q1. In the same quarter last year, Marvell earned an adjusted 24 cents a share on sales of $1.16 billion.
Marvell makes data-center semiconductor products, including server processors, AI accelerators, and networking and storage chips. Marvell designs custom AI chips for Alphabet's Google, Amazon and Microsoft.
"We closed fiscal year 2025 on a high note," Chief Executive Matt Murphy said in a press release. "This performance was driven by strong growth in our data center end market, where revenue increased 78% year over year in the fourth quarter, along with a continued recovery in our multi-market businesses."
He added, "Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products. Marvell has secured multiple new design wins, including several custom silicon programs that will fuel future growth."
MRVL Stock Is On IBD Tech Leaders List
On Monday, Marvell demonstrated its first 2-nanometer silicon IP (intellectual property) for next-generation AI and cloud infrastructure. Circuit widths on chips are measured in nanometers, which are one-billionth of a meter.
Marvell's 2-nanometer chips will enable hyperscalers to dramatically boost the performance and efficiency of their infrastructure, the company said in a press release. The chips will be produced by Taiwan Semiconductor Manufacturing.
Industry peer Broadcom is scheduled to report its fiscal first-quarter results late Thursday.
MRVL stock and AVGO stock are both on the IBD Tech Leaders list.
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