Marvell Q2 Data Center Performance Worsens AI Slowdown Concerns, But Retail Traders Focus On Attractive Valuation

Marvell Technology, Inc.'s (MRVL) stream on Stocktwits attracted brisk retail chatter as the stock fell sharply late Thursday following the release of its quarterly results.

The 24-hour message volume change leading up to late Thursday climbed over 1,240%. The stock was among the top 10 trending equity tickers on the platform on Friday morning.

On Stockwits, retailers largely shrugged off the stock drop, as reflected by the improvement in sentiment to 'extremely bullish' (94/100) by early Friday, from 'neutral' a day ago. The message volume on the stream also grew louder to 'extremely high' levels. 

Santa Clara, California-based Marvell reported adjusted earnings per share (EPS) of $0.67 for the second quarter of fiscal year 2026, more than double the year-ago's $0.30 and aligning with the Fiscal consensus estimate.

Quarterly revenue reached a record $2.006 billion, up 58% year-over-year (YoY), versus the $2.01-billion consensus estimate. The revenue was $6 million above the midpoint of the guidance range Marvel issued in late May.

CEO Matt Murphy said, "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.”

“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."

Among segments, data center revenue climbed 69% YoY and 3% sequentially to $1.49 billion.  The YoY and QoQ growth slowed from the first quarter's 76% and 5%, respectively. 

For the third quarter, Marvell expects adjusted EPS of $0.71-$0.79 and revenue of $1.957 billion to $2.163 billion. Analysts, on average, expect revenues of $0.72 billion and $2.10 billion, respectively. 

The company guided to flat sequential revenue performance for the data center segment in the fourth quarter, as lower custom revenue is offset by substantial interconnect revenue.

A bullish user said, Marvell's valuation looks cheap, relative to Nvidia in terms of earnings multiple. While noting that the stock has fallen sharply this year, they said,“This is a buying opportunity.”

Another user predicted“easy” 20-30% gain for Marvell stock from current levels.

Marvell stock has lost nearly 30% of its value this year. In overnight trading, the stock was down over 12% at $67.78. The Koyfin-compiled consensus price target for the stock is $90.82, implying nearly 18% upside from the stock's Thursday closing price. 

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