Marvell Technology (NASDAQ:MRVL)
Following aggressive remarks from Federal Reserve Chairman Jerome Powell and a disappointing forecast from Marvell Technology, semiconductor stocks tumbled precipitously on Friday (NASDAQ:MRVL).
After releasing second-quarter financial results on Thursday, Marvell (MRVL) saw a decline of more than 7% to $50.94. Morgan Stanley analyst Joseph Moore called the results “decent… all things considered,” but said that several data center industry trends were worrying.
In a note to clients, Moore stated that “we had expected a mixed quarter, given inventory excess in hard disk drive and networking, with supply/demand approaching equilibrium in those markets, and we expected cloud to be strong.” Moore also stated that the overall numbers largely match what was anticipated, but with a slightly different composition.
Moore also noted that while lead times are decreasing and supply-chain concerns are still being resolved, new difficulties have recently arisen, particularly in the data center, mostly as a result of supply.
According to Moore, “our overall expectation is that hyper-scale can restart growth next year, albeit more slowly, while there will still be some headwinds on the on-premise side. As we have observed in consumer markets (where smartphone and PC decelerations began as a supply problem), it can be difficult to separate supply and demand difficulties at this point.
Decline in semiconductor stocks
Nvidia (NASDAQ:NVDA) and rival peer Advanced Micro Devices (NASDAQ:AMD) both slumped 5.5% and 3.5%, respectively, following Marvell Technology (MRVL) in a downward trend. As each company’s share price fell by more than 3%, other chipmakers like Intel (INTC), Qualcomm (QCOM), Micron (MU), and Broadcom (NASDAQ:AVGO) are also expected to close the week on a negative note. Analysts predict that Broadcom (AVGO), which is expected to release third-quarter results next week, will earn $9.55 per share on $8.41B in revenue.
In a statement made last week ahead of earnings, Wells Fargo noted that Marvell Technology’s (MRVL) backlog may have reached a peak and that the business is “not immune” to macroeconomic headwinds.
Featured Image: Megapixl @Michaelvi
Author Jowi Kwasu 
