Marvell Technology Inc. (Marvell Technology (MRVL)) reported first-quarter results that narrowly beat Wall Street estimates and laid out an aggressive growth story tied to AI infrastructure. But the stock still dipped in premarket trading Thursday, caught in a broader tech sell-off as traders took profits after a massive rally.

Nasdaq futures were down 0.47% and S&P 500 futures slipped 0.24%, with momentum-driven semiconductor stocks underperforming. Marvell shares have gained more than 207% over the past 12 months, so some profit-taking isn't surprising.

Earnings Snapshot

Marvell reported adjusted earnings of 80 cents per share, beating analysts' consensus estimate of 79 cents. Revenue rose 28% year over year and 9% sequentially to $2.42 billion, slightly ahead of estimates of $2.4 billion. The growth was driven by continued strength in data center and AI infrastructure demand.

Data center revenue reached a record $1.83 billion, increasing 27% from a year earlier and 11% from the prior quarter. The company said growth was supported by strong demand for interconnect, switching, custom silicon and optical products.

Chairman and CEO Matt Murphy said Marvell is experiencing “an incredible growth period,” driven by surging AI-related demand.

“We're seeing record demand, we're seeing record bookings the last few quarters. Our data center business is on fire,” Murphy said on the earnings call. He added that the company expects accelerating revenue growth this year and next year “already from a strong base.”

Outlook

For the second quarter, Marvell forecast adjusted earnings of 88 cents to 98 cents per share, compared with analysts' estimates of 90 cents per share. The company projected revenue between $2.57 billion and $2.84 billion, compared with consensus estimates of $2.6 billion.

Marvell expects fiscal 2027 revenue to increase about 40% year over year to approximately $11.5 billion, driven primarily by continued demand for AI and data center infrastructure.

The company also raised its fiscal 2028 revenue outlook to about $16.5 billion, implying roughly 45% annual growth. Marvell said the forecast reflects strong visibility across existing and new AI programs.

Data center revenue is expected to grow about 50% in fiscal 2027 and accelerate to approximately 55% growth in fiscal 2028.

Marvell also forecast Ethernet switching revenue to exceed $600 million in fiscal 2027, roughly doubling from fiscal 2026 levels, and surpass $1 billion on an annualized basis in fiscal 2028.

MRVL Price Action: Marvell Technology shares were down 2.52% at $193.70 during premarket trading on Thursday.