Marvell Reports Q2 Profit on AI Demand, Forecasts Lower Q3 Revenue

Marvell Technology posted a second-quarter profit of $194.8 million, reversing a loss from the previous year, with revenue rising 58% to $2.01 billion, driven by strong demand for its AI-related silicon and electro-optics products and recovery in enterprise networking and carrier infrastructure markets. Despite meeting earnings expectations, Marvell's guidance for third-quarter revenue of $2.06 billion fell short of Wall Street's average estimate of $2.11 billion, causing its shares to drop around 8% in after-hours trading. CEO Matt Murphy highlighted the company's active engagement in over 50 new AI design opportunities with more than 10 customers, signaling robust AI-driven growth potential. However, economic uncertainty and concerns over tariffs have led to cautious customer spending, impacting demand projections. Year-to-date, Marvell's stock has declined approximately 30%, reflecting investor skepticism amid these mixed signals. Overall, while Marvell shows strong AI-related momentum, its cautious revenue forecast amid macroeconomic challenges weighs on investor confidence.