MRVL Stock Drops In Premarket Despite Strong Q1 Report, Long-Term Outlook: Retail Turns More Bullish

• Marvell shares dropped 2% in Thursday’s premarket session.
• Results and guidance driven by “strong demand across a broad set of Marvell solutions," CEO Matt Murphy said.
• Stocktwits sentiment for MRVL shifted to ‘extremely bullish,’ from ‘bullish.’

Marvell Technology shares dropped nearly 2% in early premarket trading on Thursday, despite the company reporting fiscal first-quarter revenue that surpassed expectations and raising its long-term outlook.

The move appears to reflect a “sell the news” reaction, similar to what was seen following strong earnings reports from Nvidia, Micron, and others this earnings season. It also suggests some degree of profit-booking by investors seeking to capitalize on the stock’s sharp gains in recent months.

Still, retail traders grew more bullish on MRVL and eyed long-term positions. On Stocktwits, the retail sentiment turned ‘extremely bullish’ from ‘bullish,’ with the 24-hour message volume for the stock rising 575%.

“$MRVL solid call, great guidance. Long-term hold,” said a trader. Another wrote: “$10 bn revenue in custom silicon alone (FY29, which is 2028 basically). That is insane. Most bullish thing I heard… This is an insane ramp. Insane,” pointing to the long-term guidance Marvell issued on Wednesday.

Marvell Q1 Results

Marvell’s fiscal first-quarter revenue increased 28% to $2.42 billion, marginally beating analysts’ estimate of $2.41 billion from FactSet. The adjusted profit of $0.80 per share came in line with expectations.

The company forecast second-quarter revenue of $2.7 billion, plus or minus 5%, compared with expectations of $2.6 billion, and profit of $0.93 per share, compared with the $0.90 target.

The bigger draw, however, was the forecasts for the following years. In March, Marvell said it expected fiscal 2027 revenue to grow more than 30% to $11 billion and fiscal 2028 revenue to approach $15 billion. The company revised those on Wednesday: fiscal 2027 would grow 40% to nearly $11.5 billion, and fiscal 2028 revenue would grow 45% to $16.5 billion.

The updated guidance "is being driven by strong demand across a broad set of Marvell solutions," Marvell CEO Matt Murphy said.

MRVL Stock Move, Analyst View

As of their last close, MRVL shares had risen 134% year to date. Currently, 38 of 44 analysts have a ‘Buy’ or higher rating on the stock, five rate it ‘Hold,’ and one rates it ‘Strong Sell,’ per Koyfin. Their average price target of $165.53 is 17% lower than the stock’s last close. 

“The Data Center segment remains the primary growth engine, generating $1.833B (+27% Y/Y, +11% Q/Q) and representing 76% of total revenue,” CFRA Research said in an investor note. “We believe strength is coming from AI-related bookings across 800G/1.6T scale-out optics, 51.2T Ethernet switches, and custom XPU solutions.”

The research firm said it believes Marvell’s acquisitions of Celestial AI and XConn contributed to the results and position MRVL to capitalize on emerging optical interconnect opportunities.

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