What were the actual data‑center revenue figures versus consensus estimates, and what drove the miss?

Actual vs. Estimate:

Marvell reported $1.06 billion in data‑center revenue for the quarter, versus a consensus forecast of $1.22 billion on the Street (≈12% below estimates). The shortfall primarily stemmed from a $156 million miss in the AI‑accelerated networking segment, where customers delayed or trimmed orders as the broader AI‑chip cycle softened.

Why the miss mattered:

1. Demand slowdown: After the early‑2023 AI hype, enterprise spend on high‑performance networking has stalled, leaving a gap in the pipeline for Marvell’s flagship “Bluefield” and “XP” families.

2. Pricing pressure: Competitive pressure from Nvidia, AMD and emerging Chinese players forced MarMarvell to concede margin on key parts, eroding top‑line growth.

3. Macro‑headwinds: Tight‑credit conditions and a cautious IT‑capex outlook in the US and Europe curtailed new data‑center builds, translating into weaker order flow.

Trading take‑away:

The 16% single‑day slide reflects the market’s pivot from growth‑fueled optimism to a more cautious stance on AI‑centric data‑center exposure. With the miss confirming a declining near‑term demand trend, the stock is now vulnerable to further downside on any additional revenue shortfalls. For risk‑averse traders, the current price may present a borderline‑risk entry on a short‑term technical bounce (if the shares find support around the $135‑$140 range) with a bias toward selling on any retest of the June‑July lows (~$115). Conversely, investors looking for a longer‑haul position should wait for clearer guidance on next‑quarter data‑center bookings and margin trajectory before taking a long exposure.