After investors poured into semiconductor stocks last year, expectations are high, and companies are having trouble making Wall Street happy.After investors poured into semiconductor stocks last year, expectations are high, and companies are having trouble making Wall Street happy.
More than two years into the generative artificial intelligence boom, Wall Street is setting an increasingly high bar for chipmakers.
When it comes to earnings reports — most recently from Marvell Technology
They’re demanding results.
Marvell shares plummeted 20% on Thursday, their steepest slump since 2001, after guidance fell short of some elevated estimates. The company’s revenue forecast as well as its results for the latest quarter were all ahead of the average analyst estimate, according to LSEG, but Wall Street wanted more after the stock soared 83% in 2024.
“While Marvell reported a small beat and raise, the guide was definitively below buyside expectations,” analysts at Cantor wrote in a report following the results.
Nvidiaearnings and revenue that sailed past estimates. Shares of Advanced Micro Devicesfell more than 6% earlier in February after beating expectations. The one troubling number for AMD was a miss in its data center business.
Optical supplier Credo Technology
The VanEck Semiconductor ETFTaiwan Semiconductor Manufacturing Co.Broadcom
The challenge on Wall Street for chipmakers underscores the pressure they’re under as the AI buildout stretches into its fourth calendar year. Tariffs from the Trump administration and chip export controls have added to investor concerns.
However, not all companies in the space are getting the same treatment. Broadcomresults, including strong infrastructure and semiconductor revenue.
