Marvell Technology’s (MRVL) stock is down 8% on Aug. 28 after the chipmaker’s financial results narrowly beat Wall Street estimates.
The company reported earnings per share (EPS) of $0.94 U.S. for its fiscal second quarter, slightly ahead of the consensus estimate of $0.93 U.S.
Revenue in the period totaled $2.74 billion U.S., above Wall Street’s consensus forecast of $2.72 billion U.S. Sales were up 37% from a year earlier.
Marvell, which both designs microchips and supplies optical networking equipment to connect artificial intelligence (A.I.) servers, has seen it share price rise 170% this year.
Expectations were high for the company heading into its latest financial results, and analysts were quick to say that investors wanted to see stronger growth from the company.
Marvell’s stock got an added boost over the past week on news that Google parent company Alphabet (GOOGL) has taken a $12.2 billion U.S. stake in the company.
Marvell and Alphabet plan to partner on Google’s A.I. tensor processing units (TPUs), which is a boost to Marvell’s custom chip design business.
Looking ahead, Marvell raised its guidance for the current quarter, forecasting earnings of $1.05 U.S. to $1.15 U.S. per share on revenue of $3.15 billion U.S. at the midpoint of its range.
Wall Street had earnings of $1.08 U.S. a share and $3.04 billion U.S. in revenue penciled in for the company.
Prior to today, MRVL stock had gained 213% over the last 12 months to trade at $241.45 U.S. per share.
