Marvell Technology Stock Slides Despite Strong Data Center Growth
Friday, 8 March 2024, 19:03
Marvell falls short of expectations
The chip-maker's shares slipped on disappointing guidance. Marvell Technology (NASDAQ: MRVL) saw revenue rise just 1% in the latest quarter, with growth driven mainly by data-center sales despite declines in other segments.
Gross Margin Decline and Rising Expenses
- Marvell's gross margin decreased to 46.5%.
- GAAP operating expenses rose due to stock-based compensation and restructuring charges.
- Adjusted EPS remained flat at $0.46.
What's next for Marvell
Despite strong AI-driven data center growth, Marvell's overall guidance fell short of expectations for the first quarter, leading to a decline in stock value. The company anticipates continued demand growth in the data-center segment, but weaknesses persist in other areas.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.