Marvell Technology(US:MRVL) Zheng Quan Shi Bao·2025-08-30 09:33Core Viewpoint - The AI chip sector is facing significant challenges, highlighted by the sharp decline in Marvell Technology's stock price due to disappointing earnings guidance and performance [1][3]. Financial Performance - Marvell Technology expects third-quarter revenue of $2.06 billion, below analyst expectations of $2.1 billion [3]. - The company reported second-quarter revenue of $2.01 billion, a 58% year-over-year increase, meeting analyst expectations [4]. - Data center business contributed $1.49 billion in revenue, a 69% year-over-year increase, but fell short of the average analyst estimate of $1.51 billion [4]. Analyst Sentiment - Analyst Vivek Arya from Bank of America downgraded Marvell's rating from "Buy" to "Neutral," citing increased uncertainty regarding the company's AI growth prospects [4]. - Arya adjusted the 2026 data center business growth rate forecast from 23%-25% to mid-teens, reflecting concerns over project timelines and competitive pressures [4]. Market Reaction - On August 29, Marvell's stock fell nearly 19%, contributing to a year-to-date decline of over 40% [1][4]. - The Philadelphia Semiconductor Index dropped over 3%, with major chip stocks like Broadcom, AMD, and NVIDIA also experiencing declines [5]. Industry Context - The volatility in Marvell's stock and other semiconductor stocks is attributed to previously high expectations and valuations in the AI chip sector, leaving little room for error in earnings reports [5]. - NVIDIA's recent earnings report showed a revenue of $46.7 billion, exceeding expectations, but the market reacted negatively due to concerns over slowing growth rates in AI spending [7]. - NVIDIA's CEO emphasized the ongoing demand for AI computing power, predicting significant market expansion in the coming years [8].