TLDR
- Shares fell 11% to $54.51 after delaying investor day and narrowing revenue guidance
- Fiscal Q1 revenue midpoint held at $1.875 billion, but witha tighter range
- CEO cites uncertain macroeconomic environment impacting plans
- Stock down 50% year-to-date, sharply underperforming the S&P 500
- AI custom silicon remains a bright spot, with updates expected next month
Marvell Technology (NASDAQ: MRVL) shares slumped 11% to $54.51 in afternoon trading on May 7 after the chipmaker postponed its upcoming investor day and narrowed guidance for the current quarter. The stock has now lost over 50% of its value in 2025, far underperforming the broader S&P 500.
Marvell Technology (MRVL)
The company cited “the dynamic macroeconomic environment” for the delay of its investor day, originally scheduled for June 10. Marvell now plans to hold the event sometime in 2026. CEO Matt Murphy acknowledged the uncertain backdrop but emphasized ongoing progress in its AI custom silicon business.
$MRVL …Shares of Marvell Technology declined as the chip maker postponed its investor day, citing the uncertain macroeconomic environment.
The stock fell 4.6%, to $58.42, in after-hours trading Tuesday. It has slipped about 45% since the beginning of the year.
Marvell,… pic.twitter.com/gB2ibYoDKN
— Marty Chargin (@MartyChargin) May 7, 2025
Guidance Narrowed, But Midpoint Affirmed
Marvell maintained the midpoint of its fiscal Q1 2026 revenue guidance at $1.875 billion. However, it tightened the expected range to plus or minus 2%, down from the prior plus or minus 5%, signaling less flexibility in its outlook.
Despite the external challenges, Murphy noted that the company continues to expand its opportunities in AI infrastructure. Marvell plans to highlight these developments at its technical leadership conference in Santa Clara next month, alongside a webinar focused on AI custom silicon.
Stock Performance Under Pressure
Year to date, MRVL shares have plunged 50.2%, reflecting deep investor concerns about its earnings visibility and broader semiconductor demand. By comparison, the S&P 500 has slipped just 4.6% over the same period. Over the past year, Marvell shares are down nearly 20%, while the index gained over 8%.
Marvell’s long-term record shows mixed results: while the stock is still up 112% over five years, it has lagged over the past three, delivering a negative return.
Profitability Remains a Weak Spot
The company continues to struggle with profitability, posting a net loss of $885 million over the past 12 months. Its profit margin stands at -15.3%, with return on equity at -6.3%. Diluted EPS for the trailing 12 months was negative at -$1.02.
Still, Marvell maintains a solid cash position with $948.3 million on hand and levered free cash flow of $1.69 billion. Debt remains manageable with a debt-to-equity ratio of 32.4%.
While the company’s AI silicon business offers a promising growth lever, Marvell’s near-term outlook remains clouded by economic headwinds and investor caution.
