Marvell Technology’s AI Ambitions Face Market Scrutiny

Marvell Technology, a key player in the artificial intelligence semiconductor space, delivered a mixed financial performance that left investors concerned about near-term growth prospects. While the company posted record quarterly revenue, significant weaknesses emerged in its data center AI division—the very segment markets had pinned their highest growth expectations upon.

For its second fiscal quarter, Marvell reported record revenue of $2.006 billion, representing a substantial 58% year-over-year increase and slightly surpassing analyst expectations. The company also demonstrated improved profitability, reporting net income of $194.8 million compared to losses during the same period last year. However, the impressive headline numbers concealed disappointing performance in critical areas. Data center revenue reached $1.49 billion, falling short of the projected $1.51 billion that analysts had anticipated.

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