Marvell Technology Inc. (MRVL) saw its stock plummet 14.3% in the after-hours trading session on Wednesday, despite reporting better-than-expected fourth-quarter results and providing a solid outlook for the first quarter of fiscal 2026.

The semiconductor company, which designs chips for data centers, 5G infrastructure, and automotive applications, reported revenue of $1.82 billion for the quarter ended February 1, 2025, surpassing analysts' estimates of $1.80 billion. Adjusted earnings per share (EPS) came in at $0.60, in line with consensus expectations.

Marvell's strong performance was driven by impressive growth in its data center business, which saw revenue surge 78% year-over-year. This segment now accounts for 75% of the company's total revenue, highlighting its increasing focus on the lucrative artificial intelligence (AI) and cloud computing markets.

However, investors seemed underwhelmed by the results, perhaps expecting even stronger growth in the AI-driven data center segment. The company's guidance for the first quarter of fiscal 2026 also fell short of expectations, with revenue projected to be around $1.88 billion, slightly above analysts' estimates of $1.87 billion.

Marvell's CEO, Matt Murphy, expressed confidence in the company's positioning, stating, "Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products. Marvell has secured multiple new design wins, including several custom silicon programs that will fuel future growth."