Marvell stock slumps after data center revenue, forecast disappoint

Shares Marvell Technology The artificial intelligence assess fell 15% on Friday after the inadequate estimates of the data center income and gave lifeless guidance for the existing quarter.

The company did this compared to the LSEG consensus:

• Earning per share: 67 cents set and 66 cents are expected
• Revenues: 2.01 billion dollars and $ 2.01 billion expected

Revenue increased by 58% from financial years from a year. second quarter Marvell CEO Matt Murphy said in a statement that the company ended on August 2, which is a record that is partly fueled by the “Strong AI demand” for private silicone and electro-optical products.

The company’s net income per share was $ 194.8 million or 22 cents per share, compared to 22 cents per share, a net $ 193.3 million -dollar damage of 193.3 million dollars in the same period last year.

For the third quarter of the company, the company wanted income to be 2.06 billion dollars, plus or minus 5%. According to LSEG, this was slightly below the estimation of $ 2.11 billion by analysts.

Marvell is known to create customized chips and equipment offered to cloud providers. Amazon And Microsoft.

According to StreetCount, sales in the data center segment reached $ 1.49 billion in a quarter, which fell from the Wall Street’s $ 1.51 billion.

In a conference meeting with investors, Murphy said that the company attributed to non -linear growth in private AI chips business, which expects the general data center income to be flat in order “. Murphy is expected to be “largely stronger” than the third quarter.

Authorized, as the large hyper scales create infrastructure, the “lameness” is normal, he added.

Nevertheless, some investors hoped more clarity around the company’s new customers around the pipeline.

Cantor analysts wrote to customers on Thursday. “Without this, we find it very difficult to install the company’s 20% data center market share target.” “So we expect more bottom of the bottom before returning potentially positively.”

The analysts in Bank of America have dropped Marvell’s shares impartially to purchase on Friday and dropped their price targets to $ 78 per share and partly the company’s AI growth expectations.