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Marvell Plunges 18% After Earnings Miss, Clouding AI Spending Outlook
29 Aug
Summary
- Marvell stock fell 42% year-to-date as of August 2025
- Marvell's data center sales missed analyst targets in Q2 2025
- Marvell's revenue outlook fell short of expectations
On August 29, 2025, Marvell Technologies' stock fell as much as 18% after the company reported earnings that missed analyst forecasts. The chipmaker's data center sales for the second quarter of 2025 fell short of the consensus target, and its revenue outlook also fell short of expectations.
This weak performance stands in stark contrast to the strong results reported by industry leader Nvidia earlier in the week. Nvidia's earnings had helped alleviate concerns about a potential AI bubble or slowdown in spending, as the company demonstrated that AI-driven demand remains robust.
However, Marvell's recent-quarter results and guidance suggest that the company is not benefiting from the AI spending surge to the degree that investors had hoped. This has raised questions about Marvell's ability to capitalize on the growing AI market.
The stock's 42% year-to-date decline as of August 2025 follows a strong 198% rally across 2023 and 2024. Analysts note that Marvell will likely need to provide a clearer update on its long-term AI fundamentals and design-win visibility with top AI customers to alleviate the current concerns and regain investor confidence.
