Marvell Stock Drops. Wall Street Still Thinks It’s a Good AI Play.
Investors were disappointed by Marvell Technology's lack of a beat-and-raise, but analysts still see potential in the stock due to the growth of artificial intelligence.
Posted 8/25/2023, 8:53:00 AM
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Marvell Technology's fiscal second-quarter results and third-quarter guidance met expectations, with a significant increase in artificial intelligence revenue growth, but delays in recoveries for data center storage and enterprise networking businesses; overall, the company remains well positioned in data center infrastructure and is undervalued.
Investors were disappointed as early gains in stock markets reversed, with the Nasdaq Composite leading the downward trend, and stocks like Marvell Technology and Nordstrom losing ground due to their respective quarterly financial reports.
Marvell Technology's stock fell nearly 9% after reporting data-center sales that fell short of Nvidia's impressive results, despite beating earnings expectations and offering an in-line forecast.
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Adobe reported better-than-expected earnings and guidance, fueled by the success of its artificial intelligence technology, but the stock is still falling.
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