Lanceljx
11:02

Marvell beat, raised guidance, and still broke. Q2 revenue rose 37% YoY to $2.74bn, while Q3 guidance of $3.15bn topped consensus. Yet MRVL fell 1.49% in regular trading and nearly 8% after hours. The issue was expectations: after a 184% YTD rally, investors wanted more, particularly from the Google custom-chip deal. Management indicated its bigger contribution comes in FY29 rather than FY28.


My pick is Broadcom. It offers the strongest combination of custom AI silicon, networking and optical exposure without relying on one part of the supply chain. Marvell still has an excellent growth story, but valuation and expectations make execution risk high.


For higher-risk upside, I prefer upstream optics such as Lumentum or Coherent. AI clusters need increasingly more optical connectivity regardless of which custom accelerator wins.


AVGO for quality, optics for torque, MRVL after expectations reset further.

Marvell Drops After Earnings — Is Optical Networking Still a Trade?
Marvell beat and still broke. FY27 Q2 revenue +57% year-over-year, above consensus, with Q3 guidance of $3.15bn well ahead — and the stock closed −1.49%, then fell another 8.02% after hours. The problem was price, not the print: up 184% year-to-date, a beat was not enough. Optical names followed it lower after hours despite closing higher on the day, Lumentum +1.82% and Coherent +0.35%, while Broadcom rose 4.49%. Marvell, Broadcom, or the upstream optical module makers?
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Comments

  • snipey
    11:33
    snipey
    Feels more like AI hardware rotation than just expectations. After Nvidia earnings the whole chain got sold first, and MRVL was the easy target lol
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