Marvell (MRVL) Stock Drops Despite Beating Earnings — Here’s Why

TLDR

• Marvell reported Q1 revenue of $2.42 billion, slightly beating Wall Street estimates of $2.41 billion
• Adjusted EPS came in at $0.80, in line with analyst expectations of $0.79
• Data-center revenue hit $1.83 billion, up 27% year-over-year
• Q2 revenue guidance of $2.57B–$2.84B topped analyst estimates of $2.6 billion
• MRVL stock dropped 2.6% in premarket trading despite the beat

Marvell Technology (MRVL) stock fell 2.6% in premarket trading on Thursday, even after the chip company posted a Q1 revenue beat and issued stronger-than-expected guidance.

Marvell Technology, Inc., MRVL

The stock currently trades around $198.70, up over 208% in the past year, though it has pulled back from recent highs.

Marvell posted Q1 revenue of $2.42 billion, just ahead of Wall Street’s estimate of $2.41 billion. Adjusted EPS landed at $0.80, matching analyst expectations of $0.79.

The data center segment was the standout performer. Revenue there came in at $1.83 billion, beating estimates of $1.81 billion and up 27% from the same period last year.

For Q2, Marvell guided for revenue between $2.57 billion and $2.84 billion, compared to analyst expectations of $2.6 billion. Adjusted EPS is expected between $0.88 and $0.98, with consensus at $0.90.

Goldman Sachs Raises Price Target

Goldman Sachs raised its price target on MRVL to $180 from $125 following the results, while keeping a Neutral rating on the stock.

The firm said guidance topped Wall Street expectations, backed by management’s raised outlook for 2026 and 2027. Goldman also flagged Marvell’s custom silicon revenue opportunity, which the company sees reaching $10 billion by 2028.

Goldman noted that investor expectations were already elevated heading into the print, given strong results from peers and heavy spending by key customers.

The firm said it could turn more constructive if it gains more confidence in Marvell’s custom compute revenue ramp in 2027 and beyond.

AI Infrastructure Spending Drives Demand

Hyperscalers like Microsoft are spending hundreds of billions on AI infrastructure this year. That spending directly benefits Marvell, which designs and sells custom chips for AI and optical-networking applications.

The stock has more than doubled in 2026 as demand for data center hardware has climbed. But with the stock trading above Goldman’s new $180 price target, the bank sees limited near-term upside.

InvestingPro flagged MRVL as overvalued relative to its Fair Value, though it also noted a perfect Piotroski Score of 9 and an attractive PEG ratio of 0.16.

Marvell’s record Q1 revenue of $2.418 billion and the raised Q2 outlook were enough to push the stock higher in aftermarket trading Tuesday, before the premarket pullback on Thursday.

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