In this articleMRVL your favorite stocksCREATE FREE ACCOUNTMarvell nology Group Ltd. headquarters in Santa Clara, California, on Sept.
6, 2024.David Paul Morris | Bloomberg | Getty Imagess of Marvell nology plunged 18% on Friday after the artificial intelligence chipmaker's data center revenue fell short of estimates and it gave lackluster guidance for the current quarter.Here's how the company did in comparison with LSEG consensus estimates:Earnings per : 67 cents adjusted vs.
66 cents expectedRevenue: $2.01 billion vs. $2.01 billion expectedRevenue jumped 58% from a year ago in the fiscal second quarter that Aug.
2, a record for the company that was fueled in part by "strong AI demand" for its custom silicon and electro-optics ducts, Marvell CEO Matt Murphy said in a statement Thursday.The company had net income of $194.8 million, or 22 cents per , compared with a net loss of $193.3 million, a loss of 22 cents per , during the same period last year.For the fiscal third quarter, the company called for revenue to be $2.06 billion, plus or minus 5%.
That was slightly below the $2.11 billion forecast by analysts, according to LSEG.Read more CNBC newsTesla sales plunge 40% in Europe as Chinese EV rival BYD's tripleNvidia CEO Huang says bringing Blackwell AI chip to China 'is a real possibility'Microsoft fires two employees over into its president's officeGoogle has eliminated 35% of managers overseeing small teams in past year, exec saysMarvell is known for creating customized chips and hardware, which it offers to cloud viders such as Amazon and Microsoft.Sales in its data center segment reached $1.49 billion during the quarter, which fell short of Wall Street's jected $1.51 billion, according to StreetAccount.On a conference call with investors on Thursday, Murphy said the company expects "overall data center revenue in Q3 to be flat sequentially," which he attributed to nonlinear growth in its custom AI chips .
Fourth-quarter growth is expected to be "substantially stronger" than the third quarter, Murphy said.He added that "lumpiness" of the guidance is normal as large hyperscalers build out infrastructure.Still, some investors were hoping for greater clarity on the company's pipeline of new customers."Without this, we find it very difficult underwriting the company's 20% data center market target," Cantor analysts wrote in a Thursday note to clients.
"Thus, we wait for more bottoms up granularity before potentially turning more positive."Analysts at Bank of America downgraded Marvell's stock to neutral from buy on Friday and lowered their price target to $78 per from $90, partly on concerns around the company's AI growth spects "in the near/medium term."Stock Chart IconStock chart iconMarvell year-to-date stock chart.Don’t miss these insights from CNBC What Nvidia's earnings mean for the stock market and AI tradeJosh Brown says if Apple announced a deal with Perplexity AI, the s would hit a recordChallenging Buffett: Buying wonderful companies at fair prices isn't more fitableBest Stocks: The value name with one of the best long-term charts Josh Brown has ever seen