Marvell Technologies stock price falls on the outlook of weak AI data centers

Movement: Marvell Technologies fell 18% on Friday after a revenue report that missed forecasts.

Stock prices were severe in 2025, and now have fallen 42% since the start of the year. The weak performance follows 198% of rallies in 2023 and 2024.

why: Marvel reported second quarter data center sales that missed consensus analyst goals. It also gave revenue outlook.

This report contrasted with a strong report from sector leader Nvidia earlier this week, and was good for alleviating concerns about AI bubbles and slowing spending.

What that means:Nvidia has established that AI spending will continue to move forward strongly. This is the concept that Wall Street agreed as Wall Street is in a hurry to raise its stock price target after earnings.

Marvell's recent quarter performance and Outlook suggest that it is not participating in spending to the extent that investors want.

Overall strong revenues make it clear that AI spending is likely to remain strong for the coming quarter. This is bad news for Marvel after the revenue report highlighted concerns about data center growth.

“With the inline 2Q sales and 3Q topline guidance mistakes, especially in data centers, the strong AI demand and intensive capital expenditures from HyperScalers, can disappoint and put pressure on recent emotions,” Bloomberg Intelligence wrote after the report.

The analyst added, “A clearer update on long-term AI fundamentals, trajectory for 2026, and visibility to beat the design with the top 10 AI customers is likely to be needed to alleviate concerns.”

But until that happens, Marvel will struggle to convince investors not to count it, especially if Wall Street sentiment continues to change in a negative direction. Bank of America has already downgraded it to a neutral rating.