Jim Cramer on Marvell's 8% Drop: The Problem Is the Price, Not the Quarter

Jim Cramer called Marvell's latest quarter solid, then warned that Marvell stock could hand back part of its 2026 gain. He sees the same risk across data center names.

The chipmaker beat Wall Street estimates on Thursday. Even so, shares slid more than 8% before Friday's open.

Why Marvell Stock Fell After Beating Estimates

Marvell reported revenue of $2.74 billion for its second fiscal quarter. That figure climbed 37% from a year earlier and topped the $2.72 billion consensus.

Data center sales carried the quarter. The unit delivered $2.17 billion, up 46% year over year, and made up 79% of total revenue.

Profit growth looked just as strong. Net income reached $308 million, up from $194.8 million a year earlier. Adjusted earnings landed at 94 cents per share.

Management guided higher as well. Marvell pointed to about $3.15 billion for the current quarter, above the $3.04 billion analysts expected. It also raised its fiscal 2028 revenue target to $18 billion from $16.5 billion.

Nevertheless, sellers took over. Shares closed at $241.45 on Thursday, then traded near $222 in Friday's pre-market session. That marked a drop of 8.05%.

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