Marvell Technology shares dropped 10.28% to close at $216.62 from $241.45, a sharp reversal that came even as the company posted fiscal second-quarter results that beat both revenue and earnings expectations, according to a Friday note from SeekingAlpha. The decline stood out against a backdrop of largely bullish commentary from Wall Street following the report.
The analyst response was mixed on price targets but broadly positive on the stock's rating. Craig-Hallum's Christian Schwab maintained a Buy rating and raised his price target from $217 to $300. Rosenblatt and Needham also lifted their forecasts to $300, citing an upgraded revenue outlook tied to data-center demand, according to Benzinga. B. Riley Securities analyst Craig Ellis kept his Buy rating in place but trimmed his target to $315 from $345, a rare instance of a target cut amid an otherwise upbeat round of commentary.
Part of the bullish case tied to a Google artificial-intelligence chip partnership that analysts said could drive as much as $120 billion in long-term revenue for Marvell, per Benzinga's reporting. That figure underscores why several firms kept price targets well above the stock's post-earnings close even as shares sold off.
The drop leaves Marvell down 8.61% over the last five trading days, though the stock remains up 15.04% over the last 30 trading days. Shares still sit well below their 52-week high of $329.88, set earlier in the past year, and far above the 52-week low of $61.44. Investors will be watching whether the Google chip relationship and broader data-center demand translate into the kind of revenue growth analysts are now pricing into targets north of $300.