Chipmaker Marvell Technology late Thursday matched Wall Street's targets for its fiscal second quarter but missed with its sales outlook. Marvell stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 67 cents a share on sales of $2.01 billion in the quarter ended Aug. 2. On a year-over-year basis, Marvell earnings rose 123% while sales climbed 58%.
For the current quarter, Marvell forecast adjusted earnings of 74 cents a share on sales of $2.06 billion. Wall Street had been modeling earnings of 72 cents a share on sales of $2.11 billion in the fiscal third quarter. In the same period last year, Marvell earned an adjusted 43 cents a share on sales of $1.52 billion.
"Marvell's growth is being fueled by strong AI demand for our custom silicon and electro-optics products, as well as a significant increase in the pace of recovery in our enterprise networking and carrier infrastructure end markets," Chief Executive Matt Murphy said in a news release.
He added, "Our custom AI design activity is at an all-time high, with the Marvell team now engaged in over 50 new opportunities across more than 10 customers."
Marvell Stock On Tech Leaders List
In after-hours trading on the stock market today, Marvell stock tumbled roughly 8% to 71.25. During the regular session, Marvell rose 3.3% to close at 77.23.
Marvell makes semiconductor products for data centers, including server processors, AI accelerators, and networking and storage chips. It also makes chips for enterprise networking, carrier infrastructure, consumer devices, and automotive and industrial applications.
It designs custom AI accelerators for Amazon and Microsoft.
Marvell stock is on the IBD Tech Leaders list.
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