The Investor
28 Aug 2026, 10:48
Marvell Falls 7.6% Despite Record Revenue as Guidance Fails to Impress
Marvell Technology (NASDAQ: MRVL) shares fell 7.6% in premarket trading despite reporting record fiscal second-quarter revenue and continued strong AI-related demand.
Revenue reached $2.739 billion, up 37% year over year and $39 million above the midpoint of Marvell’s guidance. Non-GAAP EPS came in at $0.94, while data center revenue growth accelerated to 46%, supported by strong demand across the company’s AI infrastructure portfolio.
Marvell also projected third-quarter revenue of about $3.15 billion, with non-GAAP EPS of $1.10, and raised its revenue outlook for both fiscal 2027 and fiscal 2028. Management said AI bookings remain “exceptionally robust,” with custom silicon growth expected to accelerate significantly during the second half of the year.
The negative stock reaction therefore appears driven less by current results and more by elevated expectations surrounding Marvell’s AI business. After strong investor enthusiasm around AI networking and custom chips, the market may have been positioned for an even larger beat or stronger near-term guidance. Expected non-GAAP gross margin of 57.5%–58.5%, below Q2’s 58.9%, may also be contributing to the pressure.
Despite the selloff, Marvell remains strongly positioned in AI data-center infrastructure, particularly in custom silicon and high-speed connectivity.
Marvell Technology (NASDAQ: MRVL) shares fell 7.6% in premarket trading despite reporting record fiscal second-quarter revenue and continued strong AI-related demand.
Revenue reached $2.739 billion, up 37% year over year and $39 million above the midpoint of Marvell’s guidance. Non-GAAP EPS came in at $0.94, while data center revenue growth accelerated to 46%, supported by strong demand across the company’s AI infrastructure portfolio.
Marvell also projected third-quarter revenue of about $3.15 billion, with non-GAAP EPS of $1.10, and raised its revenue outlook for both fiscal 2027 and fiscal 2028. Management said AI bookings remain “exceptionally robust,” with custom silicon growth expected to accelerate significantly during the second half of the year.
The negative stock reaction therefore appears driven less by current results and more by elevated expectations surrounding Marvell’s AI business. After strong investor enthusiasm around AI networking and custom chips, the market may have been positioned for an even larger beat or stronger near-term guidance. Expected non-GAAP gross margin of 57.5%–58.5%, below Q2’s 58.9%, may also be contributing to the pressure.
Despite the selloff, Marvell remains strongly positioned in AI data-center infrastructure, particularly in custom silicon and high-speed connectivity.
