Today’s Change
Current Price
Marvell Technology (MRVL -10.28%), a data-center networking and custom AI semiconductor solutions provider, closed at $216.62, down 10.28%. The stock fell after the fiscal second-quarter results beat estimates, as investors focused on softer fiscal 2028 guidance and a lack of details on the Google deal. Trading volume reached 47.7M shares, coming in nearly 18% above its three-month average of 40.3M shares. Marvell Technology IPO’d in 2000 and has grown 1,430% since going public.
How the markets moved today
S&P 500 (^GSPC -0.25%) closed at 7,710, down 0.27%, while the Nasdaq Composite (^IXIC -0.52%) finished at 26,402, down 0.52%. Among semiconductor design for data infrastructure, networking, and custom AI chips peers, Broadcom (AVGO -0.74%) closed at $368.79, down 0.74%, and NXP Semiconductors (NXPI -1.01%) closed at $223.58, down 1.01%.
What this means for investors
Marvell delivered earnings that beat Wall Street’s expectations, with sales and EPS rising 37% and 50%, respectively. However, analysts wanted more from the company’s 2028 guidance, despite management raising 2027 revenue guidance to $12 billion and 2028 to $18 billion, compared to $9.5 billion over the last 12 months.
After announcing a new deal with Alphabet’s (GOOG +1.53%) (GOOGL +1.74%) Google business, many analysts were hoping for more potential upside in management’s outlook for 2027 and 2028, which may have prompted today’s decline. That said, Marvell is holding an Investor Day in October, where it may discuss in more detail how this Google deal will affect earnings and guidance.
Ultimately, Marvell is priced for perfection at 53 times forward earnings — even after today’s decline — and its earnings report was solid but not “perfect” enough to support its lofty valuation.
Josh Kohn-Lindquist has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Broadcom, Marvell Technology, and NXP Semiconductors. The Motley Fool has a disclosure policy.
