Marvell Technology performed better than market expectations in the last quarter, but stock prices fell by 8 per cent after the release of the newspaper. The focus of the market has not been on profit expectations per se, but rather on whether this round of AI-led increases has reflected too much of future growth ahead of schedule.

Since this year, the cumulative increase in Marvell stock prices has been nearly 178 per cent. After an earlier rapid upturn, it was difficult to continue to push stock prices higher than expected. According to Jim Cramer, this fall is more a reflection of valuation and silo pressure than a weakness in company fundamentals.

46 per cent increase in data centre income

AI Infrastructure remains the most important source of growth for Marvell today. The corporate data centre business income increased by 46 per cent over the same period, to $2.17 billion, or approximately 79 per cent of the total during the season. This increase is due mainly to increased demand for customized chips and web products.

At the same time, management has revised up the projected next quarter, which is expected to be approximately $3.15 billion. The company also increased its sales target for the 2028 fiscal year from $16.5 billion to about $18 billion. According to Reuters, Marvell is currently projected to collect approximately $12 billion for the fiscal year 2027.

Google Cooperation Income or Quotas until 2029

Investors are also concerned about the expansion of Marvell's relationship with Alphabet. According to the article, this custom AI chip worked together to reach a maximum of $120 billion in cumulative revenue for the fiscal year 2033. As part of the cooperative arrangement, Google has also been awarded a certificate of equity, with a corresponding shareholding value of approximately $12.2 billion.

However, the market is more concerned with the pace of income. Management indicated that the largest income contribution from this cooperation may not occur until the 2029 fiscal year. This explains why the benefits have not been sustained in the short term.

It's good to have a high-predicted rundown.

This fall also reflects the current common feature of the AI plate: strong growth alone is no longer sufficient to continue the valuation expansion, given the already high expectations. Similar pressures have occurred on other data centre-related companies, although AI infrastructure transactions continue to attract funds.

For Marvell, the basics are still sound. The market is then more concerned about whether the growth of the company ' s profits in the coming quarters will continue to match the level of valuation previously pushed up by AI.