Marvell Technology Stock Plunges 18.6% - AI Gains Buried by Bleak Outlook

Another tech darling gets reality-checked by Wall Street.

Marvell's AI promise smashes against weak guidance—investors flee despite sector momentum.

Numbers don't lie: that 18.6% haircut tells you everything about market patience for 'future potential'.

Turns out even artificial intelligence can't artificial its way past sober revenue projections.

Another reminder that in traditional markets, 'growth story' often translates to 'please ignore today's numbers'.

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On Thursday evening, Marvell Technology reported adjusted earnings of $0.67 per share, matching The Street’s estimates. Revenue reached $2.006 billion, slightly below the $2.01 billion consensus. Even with this small gap, total revenue ROSE 58% from the same quarter last year. The company’s data center unit led the surge, with sales up 69% to $1.49 billion, and it now accounts for nearly three-quarters of Marvell Technology’s overall business.

Weak Forecast Weighs on Analysts’ View

However, the company’s guidance for the third quarter shifted the market’s focus. Marvell Technology projected revenue of $2.06 billion, give or take 5%. That figure came in below the Street’s $2.11 billion target. Executives said data center sales will stay flat in the coming quarter before improving toward year’s end. In the meantime, analysts noted that investors have grown used to upbeat reports from companies tied to artificial intelligence, so the lower outlook stood out.

During the earnings call, Chief Executive Matt Murphy said demand for custom silicon and electro-optics products remains strong, with more than 50 new AI design projects underway. Yet he acknowledged that timing around new deployments will affect near-term results.

After the release, several banks adjusted their stance. Bank of America’s five-star analyst Vivek Arya cut his rating on Marvell Technology to Neutral from Buy and reduced its price target to $78 from $90. UBS’s top analyst Quinn Bolton reduced his target to $80 from $85, retaining a Buy rating. Morgan Stanley five-star analyst Joseph Moore also dropped his target to $76 from $80 and a Hold position. Many of these cuts reflected caution around the pace of major cloud projects, including Microsoft’s (MSFT) Maia accelerator and Amazon’s (AMZN) next-generation chips.

Stock Levels and Market View

Marvell Technology shares have now fallen more than 40% in 2025 and trade about 50% below their January high of $126.06. Despite the weak forecast, the company posted $461.6 million in operating cash flow and kept gross margins at 59.4%. Investors will look to the fourth quarter and beyond for signs that key AI partnerships with Amazon and Microsoft can deliver stronger growth.

Is Marvell Stock a Buy?

Despite the stock’s crash on Friday, Marvell Technology continues to boast a Strong Buy consensus among analysts. The average MRVL stock price target stands at $88.52, implying a 40.81% upside from the current price.