⚙️Marvell: record growth driven by AI chips, but a weaker outlook sent the stock lower!
The custom chip maker Marvell Technology $MRVL released results for fiscal Q2 2026 that were in line with market expectations and confirmed a sharp rise in demand for AI chips. Still, markets were disappointed by the cautious outlook for the current quarter and the lack of details about new customers.

📊 FY Q2 results:
Adjusted earnings per share: $0.67 (vs $0.66 expected)

Revenue: $2.01 billion (in line with estimates)

Data center revenue: $1.49 billion (vs $1.51 billion expected)

Net income: $194.8 million ($0.22/share) versus a loss of $193.3 million (-$0.22/share) a year ago

Year-over-year revenue growth: +58% — a record high thanks to strong demand for custom silicon and electro-optical products for AI infrastructure

🔮 Outlook for Q3:
Expected revenue: $2.06 billion ±5%, slightly below estimates of $2.11 billion

CEO Matt Murphy warned of "non-linear growth" in the custom chip segment and uneven demand from the largest customers (Amazon, Microsoft, …).

Data center revenue is expected to be flat in Q3, with stronger growth anticipated in Q4.

📉 Market reaction:
Shares plunged more than 18% today!

Bank of America cut its rating from "buy" to "neutral" and lowered its price target from $90 to $78

🌍Marvell is a key supplier of chips for building AI data centers, and its custom solutions drive rapid growth but also greater demand volatility, since large customers buy in irregular cycles. The strong growth in Q2 is undeniable, but markets want to see a more stable trend.

So Marvell delivered record results, but the Q3 outlook is too cautious.

What is your view on Marvell?