Shares of Marvell Technology (MRVL) plummeted by 19.69% in Thursday's pre-market trading session, as the semiconductor company's fiscal first-quarter guidance failed to meet investors' high expectations for sustained growth driven by the artificial intelligence (AI) boom.

For the fiscal fourth quarter ended February 1, 2025, Marvell reported revenue of $1.82 billion, surpassing analysts' estimates of $1.80 billion. Adjusted earnings per share (EPS) came in at $0.60, in line with consensus expectations. The 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, Marvell's guidance for the first quarter of fiscal 2026 fell short of the highest estimates, with revenue projected to be around $1.88 billion, slightly above analysts' average estimate of $1.87 billion but failing to excite investors who were expecting sharper AI-driven growth. Concerns about slowing demand for AI infrastructure and economic uncertainty likely contributed to the sell-off, as investors questioned whether Marvell can sustain the rapid growth in its data center business.

The plunge in Marvell's stock highlights the mounting pressure on chip companies and AI firms to deliver on the high expectations surrounding the AI boom. Despite Marvell's solid performance and growth in its core data center business, the lukewarm guidance triggered concerns that the company may not be able to fully capitalize on the AI opportunity, at least in the near term.