Why Did Marvell's Stock Plunge Despite Beating Earnings Expectations?

TradingKey - AI chip supplier Marvell Technology reported better-than-expected earnings, but its stock price plummeted. Analysts believe this is due to investor concerns about AI stocks.  

On Wednesday, AI chip supplier Marvell Technology (NASDAQ: MRVL) released earnings that exceeded expectations, yet its stock price fell instead of rising. According to market data, Marvell's stock dropped over 14% in after-hours trading.

Marvell Stock Price Chart, Source: Google. 

Earnings reports show that Marvell Technology's revenue for the fourth quarter of fiscal year 2025 increased 27% year-over-year to $1.82 billion, surpassing the expected $1.8 billion. Adjusted earnings per share reached $0.60, higher than the analyst consensus of $0.59.

The company forecasts next-quarter sales of approximately $1.88 billion, in line with analysts' average expectations but below the optimistic forecast of $2 billion. This may be one of the key reasons for the stock's decline.

Additionally, Tore Svanberg, an analyst at Stifel Financial Corp., stated in a report: "Investors have been very nervous about AI stocks in recent weeks, and Marvell's report may not help ease these concerns."