Marvell raises guidance despite 20% stock plunge

What happened

The Philadelphia Semiconductor Index dropped 10.3% on June 5, wiping out more than $1.3 trillion（約210兆円） in market value. Marvell Technology fell 20% over two days, caught in a sell-off driven by Broadcom missing its AI revenue target and a stronger-than-expected jobs report that killed rate-cut hopes. The company's actual business did not change.

Why it matters

Marvell builds custom silicon (application-specific chips) and networking infrastructure that hyperscalers like Amazon, Alphabet, and Microsoft rely on to connect thousands of AI chips inside data centers. Hyperscaler AI infrastructure spending commitments total more than $725 billion（約120兆円） in 2026 alone, and Marvell posted record revenue of $8.195 billion（約1.3兆円） in fiscal 2026—a 42% year-over-year increase—with custom silicon design wins hitting an all-time record. These chips are purpose-built through years of co-development and cannot be replicated without that work.

What to watch

Marvell guided for Q2 fiscal 2027 revenue of $2.7 billion（約4300億円） (35% year-over-year growth) and raised its full-year outlook for both fiscal 2027 and fiscal 2028. The stock surged approximately 322% over the last 12 months, from around $73 to a recent price of $310.58 per share. The main risk is revenue concentration: if a major hyperscaler delays a custom chip program or builds that capability in-house, results move sharply.