Marvell shares tumble 8% as outlook underwhelms despite 37% revenue growth
Marvell Technology shares fell 8% in premarket trading despite a second-quarter revenue beat, as its fiscal 2028 outlook failed to meet investors' expectations.
Morgan Stanley upgraded Marvell Technology's stock price target to $246.00 from $224.00, keeping the rating at Equalweight. The stock's current price is $241.45, although the analysis suggests it might be overvalued. Marvell's Q2 outlook matches previous expectations, with the company predicting a 60% growth in data center sales for 2027, up from the earlier forecast of 50%.
Marvell has been performing well, with a 34% increase in revenue in the last year and a 213% stock price return in the past year. Analysts expect continued sales growth this year, and the company remains a key player in the Semiconductors & Semiconductor Equipment industry. Morgan Stanley cited Google's recent partnership with Marvell as a reason for the higher expectations.
Despite this, the stock price experienced a slight drop after hours as investors considered the company's valuation and margin mix.
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