Marvell Technology Inc. (MRVL) experienced a 15.22% pre-market plunge on Thursday, despite reporting better-than-expected fiscal fourth-quarter results and providing a solid outlook for the first quarter of fiscal 2026.

The semiconductor company reported revenue of $1.82 billion for the quarter ended February 1, 2025, surpassing analysts' estimates of $1.80 billion. Adjusted earnings per share (EPS) came in at $0.60, in line with consensus expectations. This strong performance was driven by impressive growth in Marvell's data center business, which saw revenue surge 78% year-over-year and now accounts for 75% of the company's total revenue.

However, investors seemed underwhelmed by the results, perhaps expecting even stronger growth in the AI-driven data center segment. The company's guidance for the first quarter of fiscal 2026 also fell short of expectations, with revenue projected to be around $1.88 billion, slightly above analysts' estimates of $1.87 billion.

Marvell's CEO, Matt Murphy, expressed confidence in the company's positioning, stating, "Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products. Marvell has secured multiple new design wins, including several custom silicon programs that will fuel future growth."