Proactive Investors - There was no Nvidia buzz for rival chipmaker Marvell Technology Group Ltd. (NASDAQ:MRVL) as its share prices dropped 4% in Friday’s premarket, extending Thurdsay’s near 7% decline, despite apparently exceeding market expectations with its second-quarter results.
While stronger than feared, the key financial metrics still represented a major downgrade on prior year comparatives.
Earnings (adjusted EBITDA) were reported at 33 cents, marginally above the 32 cents forecast by analysts, whilst revenue was another low-key ‘beat’ coming in at $1.34 billion versus expectations of $1.33 billion.
These metrics meanwhile represent declines of 42% and 12% respectively year-on-year.
Management sought to hitch sentiments to the roaring AI bandwagon, with chief executive Matt Murphy optimistic that the ever-increasing demand for computation translates to more business for Marvell, which makes semiconductor and high-performance solid-state memory components.
“Marvell delivered second quarter fiscal 2024 revenue above the midpoint of guidance, and we are forecasting sequential revenue growth to accelerate in the third quarter. This growth is being driven primarily by AI and cloud infrastructure," Murphy said.
“Demand from AI applications continues to strengthen, driving our overall revenue outlook from AI for this fiscal year even higher than previously outlined.”
In New York, Marvell stock was down 4.4% in Friday’s early deals changing hands at $54.76 per share.