Marvell Stock Drops 17% Following Muted Revenue Forecast

Despite exceeding AI revenue targets and posting strong Q4 results, Marvell's conservative guidance disappointed investors already cautious about AI spending trends.

Marvell Technology shares fell by 17% after the company issued in-line guidance for Q1 2025, failing to meet elevated investor expectations.
The company reported Q4 earnings of $0.60 per share and revenue of $1.82 billion, both slightly ahead of analyst estimates, with AI-related revenues driving 75% of total sales.
Marvell surpassed its fiscal 2025 AI revenue target of $1.5 billion and expects to significantly exceed its $2.5 billion projection for fiscal 2026.
Analysts cited broader concerns about slowing AI infrastructure spending and competition from low-cost Chinese AI models as contributing to the stock's decline.
Brokerages lowered price targets for Marvell, with the median target now at $130, reflecting a 44% upside from the stock's last closing price.