US microchip developer Marvell Technology more than doubled its net profit and increased its revenue by 37 per cent in the second quarter of the 2027 financial year, with both figures slightly exceeding market expectations.
Furthermore, the company raised its revenue forecast for the current and next financial years thanks to strong demand for data centre chips; however, its shares still fell sharply during Thursday’s after-hours trading.
According to a press release, Marvell’s net profit for the quarter ending 1 August rose to $308 million, or 33 cents per share, compared with $194.8 million, or 22 cents per share, for the same period in the previous financial year.
Adjusted earnings were 94 cents per share.
Revenue rose by 37 per cent to $2.74 billion.
Analysts surveyed by FactSet had forecast, on average, adjusted earnings of 93 cents per share on revenue of $2.72 billion.
Revenue in Marvell’s key segment, which develops chips for data centres, rose by 46 per cent to $2.17 billion.
Against the backdrop of these figures, the company’s management has raised its revenue forecast for the current financial year by $500 million to $12 billion, whilst the forecast for the next financial year has been increased by $1.5 billion to $18 billion. Analysts expect revenue of $11.56 billion and $16.91 billion respectively.
Marvell’s shares fell by 7.8 per cent in after-hours trading on Thursday. Since the start of the year, the company’s market capitalisation has almost tripled, to $211 billion.
Marvell, founded in 1995, specialises in the development and design of microchips, as well as networking equipment, including optical modules, controllers and adaptors.