TLDR
- MRVL stock has fallen more than 31% from its year-to-date high.
- Second-quarter revenue rose 37% to $2.73 billion.
- Data center revenue jumped 46% to a record $2.17 billion.
- Management expects third-quarter revenue of about $3.15 billion.
- Marvell secured a $12.2 billion custom chip deal with Google.
Marvell Technology (MRVL) stock has fallen more than 31% from its year-to-date high as semiconductor shares face a broad pullback. Marvell Technology recently traded near $223, about 32% below its peak this year. Semiconductor ETFs have also weakened, with SOXX down more than 19% and SMH off over 15% from their yearly highs. The decline comes even as Marvell reports faster sales growth and maintains ambitious longer-term revenue targets tied to artificial intelligence infrastructure spending.
Marvell Technology, Inc., MRVL
MRVL Stock Falls Despite Revenue Growth
Marvell Technology continues to report strong sales growth across data centers, networking, storage, and custom chip products. Second-quarter revenue rose 37% to $2.73 billion. Data center revenue reached a record $2.17 billion, up 46%, while communications revenue increased 10% to $568 million.
MRVL stock came under pressure after management issued guidance that failed to meet market expectations. The company expects third-quarter revenue of about $3.15 billion, representing 50% growth. Management also projects annual revenue growth of around 60% this year, with fiscal 2027 and 2028 revenue targets of $12 billion and $18 billion.
Hyperscaler Deals Support Future Sales
Marvell’s long-term growth plan relies heavily on large customers including Google, Amazon, and Microsoft. The company recently secured a $12.2 billion custom chip agreement with Google. A Reuters report said the business could generate more than $120 billion through fiscal 2033, with annual revenue reaching $25 billion from 2028.
Marvell also maintains similar relationships with Amazon and Microsoft. These deals give the company exposure to rising demand for custom silicon and data center infrastructure. Analysts expect revenue to reach about $12 billion this year before climbing to roughly $18.2 billion the following year.
Valuation Remains a Key Concern
Profit expectations have also moved higher alongside revenue forecasts. Analysts expect earnings per share to reach about $4.20 in 2025 and $6.72 in 2026. Stronger data center demand and custom chip orders remain central to these estimates.
However, Marvell trades at valuation levels above many semiconductor and technology peers. Its forward price-to-earnings ratio stands near 75, compared with an industry average around 22. On a GAAP basis, its forward ratio is about 124 versus a sector median near 28. These figures remain above the valuation levels of Microsoft, Nvidia, and Google, keeping pricing risk in focus for MRVL stock investors. That premium leaves shares sensitive to earnings guidance, customer spending, and market expectations. Investors are watching whether results can support forecasts during the semiconductor correction.
The post Marvell Stock Falls Despite Surging Data Center Sales appeared first on Blockonomi.
