Marvell Technology (NASDAQ:MRVL) saw its stock price plunge in premarket trading Thursday after the chipmaker's revenue forecast for the fiscal first quarter fell short of the most optimistic analyst expectations.
This dampened investor enthusiasm, who had anticipated a more significant boost from the ongoing artificial intelligence computing boom.
The company projected a first-quarter revenue of approximately $1.88 billion, aligning with the average analyst estimate but falling short of some projections that reached as high as $2 billion.
This news triggered a sharp sell-off, with Marvell shares dropping 17% in premarket trading.
Year-to-date, the stock has now declined 18%, closing at $90.14 on Wednesday.
Marvell has been widely regarded as a key player poised to capitalize on the surging demand for AI computing infrastructure.
The company's strong performance three months prior, which propelled its shares to a record high, had further fueled these expectations.
Alongside the revenue forecast, Marvell projected first-quarter earnings of 56 cents to 66 cents per share, excluding certain items.
This range fell below the average analyst estimate of 60 cents.
In the fourth quarter, Marvell reported earnings of 60 cents per share, exceeding the analyst estimate of 59 cents.
Revenue for the quarter rose 27% to $1.82 billion, also surpassing the projected $1.8 billion.