For Marvell, expectations had already become extremely high after the Google custom-silicon deal and its huge YTD rally. The fundamentals remain strong, but investors learned that the bigger Google revenue contribution may take longer to materialize, so the market reset its timeline and valuation.
My takeaway is simple: earnings are about the gap between reality and expectations. NVIDIA raised expectations for the future, while Marvell pushed some of that upside further out. I wouldn't automatically see MRVL's selloff as a broken thesis—it may simply be a valuation and timing reset.
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- WernerBilly·08-28 17:23TOPMRVL probably got hit more on the multiple than the numbers. If Google ramps later, the market is likely trimming near term growth and pushing out the DCF upside a few quarters1Report