Marvell Technology shares declined by 2.4% on the most recent trading day, underperforming the 1.1% drop in the Nasdaq Composite. Trading volume surged to 28 million shares, nearly double its 30-day average of 15 million. Investors cited profit-taking after a three-week rally and cautious commentary from semiconductor peers on near-term demand in the cloud and communications end markets.

In its fiscal second quarter, Marvell reported revenue of $1.18 billion, up 12% year-over-year but slightly below the consensus estimate of $1.20 billion. Data-center revenue rose 18% to $480 million, driven by new 7-nanometer Ethernet switch deployments, while carrier-wireless revenue declined 5% to $310 million owing to inventory adjustments at major telecom customers. Adjusted non-GAAP gross margin improved to 54.5%, reflecting operational leverage and lower wafer costs.

Management raised its full-year revenue guidance to a range of $4.75 billion–$4.85 billion, up from prior guidance of $4.65 billion–$4.80 billion, projecting year-over-year growth of 9%–11%. Non-GAAP operating margin is now expected to reach 28.5%, up from 27.8% previously. The company reiterated plans to return at least $500 million to shareholders through dividends and share repurchases, representing roughly 60% of projected free cash flow.

Marvell’s strategic focus on 5G infrastructure, cloud networking and high-performance compute positions it for above-industry growth. The company sees its new 112-gigabit PHY and AI-optimized accelerator portfolio driving revenue from hyperscale data centers and edge compute platforms, with management targeting at least 20% annual growth in those segments over the next three years.