Marvell Technology's stock experienced a significant drop, with declines ranging from 12% to nearly 18%, due to a weaker-than-expected data center revenue forecast. CEO Matthew Murphy attributed the expected flat data center revenue in the coming quarter to the 'lumpiness' of infrastructure build-outs by major cloud providers like Microsoft and Amazon, who are clients for Marvell's custom AI chips. Adding to the concern, Microsoft has reportedly delayed its in-house AI chip rollout to 2028, which could impact Marvell's business. Despite these challenges, Marvell's revenue reached $2.01 billion, aligning with expectations. In response to market shifts, Marvell divested its Automotive Ethernet business for $2.5 billion to concentrate on AI. Meanwhile, Nvidia reported strong earnings, but its stock dipped slightly amid concerns about data center sales and uncertainty in China, where shipments of its H20 chips are on hold. Despite this, Nvidia anticipates $3 trillion to $4 trillion in AI infrastructure spending by 2030 and is moving forward with its next-generation Rubin chips for 2026, along with a focus on robotics. Meta Platforms paused AI hiring after adding over 50 researchers and engineers, including Alexandr Wang, founder of Scale AI, as part of organizational planning. Meta AI has over 1 billion monthly users and aims to be the leading personal AI. In other market activity, Movano's stock jumped 81.23% due to its AI trading platform, MoBot, while SentinelOne's shares rose nearly 6% following strong earnings driven by demand for AI cybersecurity. Argan (AGX), a power plant builder, is also benefiting from the AI data center trend. Zahiruddin Shah is spearheading AI investment in the Bangladesh capital market, and Alibaba is reportedly developing its own AI chip, impacting Nvidia's stock.
Key Takeaways
- Marvell's stock fell significantly (12%-18%) due to a weak data center revenue forecast, despite reporting $2.01 billion in revenue.
- Marvell CEO Matt Murphy cited 'lumpiness' in cloud provider infrastructure builds, specifically mentioning Microsoft and Amazon, as a factor in the revenue forecast.
- Microsoft's reported delay of its in-house AI chip to 2028 is contributing to concerns about Marvell's future revenue.
- Nvidia's stock dipped despite strong earnings, influenced by data center sales concerns and uncertainty in China.
- Nvidia projects $3 trillion to $4 trillion in AI infrastructure spending by 2030 and is developing Rubin chips for 2026.
- Meta paused AI hiring after adding over 50 researchers and engineers, including Scale AI founder Alexandr Wang.
- Meta AI has over 1 billion monthly users and aims to be the leading personal AI.
- Movano's stock jumped 81.23% due to its AI trading platform, MoBot.
- SentinelOne's shares rose nearly 6% due to strong demand for AI cybersecurity.
- Alibaba is reportedly developing its own AI chip, impacting Nvidia's stock.
Marvell stock drops as AI data center forecast disappoints investors
Chipmaker Marvell Technology's stock fell 12% after giving a weak revenue forecast. Investors worry about Marvell's position in the data center market, even though it designs chips for AI work at companies like Microsoft and Amazon. Marvell's CEO Matthew Murphy said data center revenue will be flat in the next quarter but stronger in the fourth quarter. Microsoft's delay in releasing its AI chips until 2028 may also affect Marvell.
Marvell stock falls amid AI chip market concerns
Marvell Technology's stock dropped 11.3% because its data center outlook was lower than expected. Investors are concerned about the demand for custom chips that power AI for companies like Microsoft and Amazon. Marvell's CEO Matthew Murphy said data center business will be flat soon. A report said Microsoft delayed its AI chip release to 2028, which could affect Marvell, since it supplies parts for those chips.
Marvell stock plunges as AI investors react to weak forecast
Chipmaker Marvell's stock dropped after a weak data center forecast disappointed AI investors. Shares fell 12% after hours when the quarterly revenue forecast came in below market estimates. Marvell designs custom chips for AI at big tech companies like Microsoft and Amazon. CEO Matthew Murphy said data center revenue will be flat in the third quarter but stronger in the fourth quarter.
Marvell's stock plummets on weak AI chip outlook
Marvell Technology's stock fell nearly 18% because of a weak outlook for data center demand. This is due to irregular sales of its custom AI chips to cloud companies. Microsoft delayed its in-house AI chip rollout to 2028 or later. Marvell's CEO Matt Murphy said that 'lumpiness' is normal when big cloud providers build infrastructure.
Marvell stock drops after disappointing data center forecast
Marvell's stock fell 16% after its data center revenue and forecast were disappointing. Revenue was $2.01 billion, as expected, but the next quarter's forecast is slightly below what analysts predicted. CEO Matt Murphy said that data center revenue is expected to be flat in the third quarter. The company creates customized chips for cloud providers like Amazon and Microsoft.
Nvidia's future Rubin chips, robots, and AI spending
Nvidia's second-quarter revenue and earnings beat estimates, but shares fell afterward. Data center revenue was lower than expected, and shipments to China are uncertain. Nvidia projects $3 trillion to $4 trillion in AI infrastructure spending by 2030. The company's next-generation Rubin chips are in production for 2026, and robotics could power future growth.
Nvidia focuses on Rubin chips, robots, and AI growth
Nvidia reported strong earnings, but its stock dipped slightly. The company is dealing with uncertainty in China, where shipments of its H20 chips are on hold. Nvidia expects $3 trillion to $4 trillion to be spent on AI infrastructure by 2030. The company is also focusing on robotics, with its new Jetson AGX Thor platform.
Meta pauses AI hiring after bringing in new talent
Meta Platforms paused hiring in its AI division after adding over 50 researchers and engineers. This pause is part of basic organizational planning. Meta continues to invest heavily in AI this year. The company acquired Alexandr Wang, founder of Scale AI. Meta AI has over 1 billion monthly users and aims to be the leading personal AI.
Meta pauses AI hiring for planning purposes
Meta Platforms Inc. paused hiring in its AI division on August 20.
Stocks slip as Alibaba impacts Nvidia in weekly review
The stock market rally was mostly unchanged for the week. Nvidia had strong growth, but data center sales were a bit weak. Uncertainty in China is a concern, made worse by Alibaba, which is reportedly developing its own AI chip. Nvidia stock decreased, but many AI stocks increased.
Dow futures open amid Alibaba's impact on Nvidia
Dow Jones futures will open Sunday evening. A U.S. appeals court ruled that most Trump tariffs are illegal. The stock market rally was strong through Thursday, but AI stocks decreased on Friday. Nvidia stock decreased amid news of Alibaba's AI chip plans.
Zahiruddin Shah leads AI investment in Bangladesh market
Zahiruddin Shah is leading an AI investment strategy to boost the Bangladesh capital market. He is using technology to increase capital growth. Foreign investors have entered the market, increasing trading. Shah is also involved in youth financial education and supports sustainable investment projects.
Marvell faces AI chip market challenges investment risks
Marvell's revenue increased 58% to $2.006B, but its stock fell 12% due to investor concerns. The company sold its Automotive Ethernet business for $2.5B to focus on AI. Data center revenue is expected to be flat soon, raising concerns about competition. Supply chain issues and geopolitical tensions could also affect Marvell's AI plans.
Movano stock jumps on AI trading platform success
Movano's stock increased 81.23% because of its AI trading platform, MoBot. The platform gives real-time market information and automated trading. Strategic expansion plans and tech partnerships also made the stock increase. Investors are still concerned about the company's ability to execute its plans.
AI data center stock Argan jumps amid onshoring push
Argan (AGX), which builds power plants, is benefiting from the AI data center trend. The stock has been a key part of the artificial intelligence data center trade.
SentinelOne earnings show strong demand for AI cybersecurity
SentinelOne's shares rose nearly 6% after its results beat expectations. The company's annualized revenue grew 24% to over $1 billion. SentinelOne is acquiring Prompt Security to improve AI security. Cybersecurity companies are seeing strong demand because of new AI-related threats.
Sources
- Chipmaker Marvell's weak data center forecast prompts AI investors to dump its stock
- Marvell sinks as weak data center outlook stokes AI chip worries
- Chipmaker Marvell’s weak data center forecast prompts AI investors to dump its stock By Reuters
- Marvell sinks as weak data center outlook stokes custom AI chip worries
- Marvell stock slumps 16% after data center revenue, forecast disappoint
- 5 biggest takeaways from the Nvidia Q2 earnings call
- Nvidia's next steps: Rubin, robots, and a $4 trillion bet
- Meta Platforms (META) Pauses Hiring in AI Division
- Meta Platforms (META) Pauses Hiring in AI Division
- Stocks Erase Gains As Alibaba Hits Nvidia: Weekly Review
- Futures: Alibaba Hits Nvidia, AI. Why This Isn't DeepSeek 2.0.
- Zahiruddin Shah Leads AI Investment Strategy to Drive Internationalization of Bangladesh Capital Market
- Marvell's Struggling Position in the AI Chip Market: Assessing Long-Term Investment Risks Amid Shifting Dynamics
- Movano Stock Soars 81.23% on AI Trading Platform Success
- AI Data Center Play Catapults 66% Amid U.S. Onshoring Push, Massive Bull Cycle For Power Industry
- SentinelOne Earnings Point to Strong AI-Driven Cybersecurity Demand
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