Marvell Technology plunged 15.4% in premarket trading Thursday after delivering a revenue forecast that fell short of the highest estimates, disappointing investors who were looking for a bigger payoff from the AI boom.

Sales will be about $1.88 billion in the fiscal first quarter, which runs through April, the chipmaker said in a statement Wednesday. Though that was in line with the average analyst estimate, some projections ranged as high as $2 billion.

Marvell has been seen as a key beneficiary of the artificial intelligence computing build-out, and that’s ramped up expectations for the chipmaker. Three months ago, the company delivered better-than-expected results that drove its shares to a record high.

The Santa Clara, California-based company provides chip design services, helping major tech customers develop their own data center semiconductors. These so-called hyperscalers have been beefing up efforts to produce processors internally, aiming to fine-tune their computer networks for artificial intelligence software and services. Amazon.com Inc. is one of Marvell’s largest customers, according to data compiled by Bloomberg.

AI-related companies suffered a stock rout this year after investors grew worried that customers will slow their spending. Chinese startup DeepSeek added to the concerns when it released an AI model that it claimed was relatively cheap to produce, signaling that the industry may not need as much costly equipment.

“Investors were already very ‘skittish’ about AI names the last few weeks,” Tore Svanberg, an analyst at Stifel Financial Corp., said in a note. Marvell’s report “probably doesn’t help calm those nerves.”

Broadcom Inc., another chipmaker tied to the AI surge, fell as well in the wake of Marvell’s results. Its stock was down 3.5% in after-hours trading. Broadcom is set to deliver its own quarterly report on Thursday.

Marvell expects earnings of 56 cents to 66 cents a share in the first quarter, excluding some items. Analysts had projected 60 cents.

Earnings grew to 60 cents a share on that basis in the fourth quarter. Analysts had estimated 59 cents. Revenue rose 27% to $1.82 billion, topping the $1.8 billion projection.