Marvell Technology (NASDAQ: MRVL) stock plummeted 16.74% in after-hours trading on Wednesday, despite reporting better-than-expected fiscal fourth-quarter results. The semiconductor company's mixed outlook and concerns over rising inventory levels appear to have triggered the selloff.

For the quarter ended February 1, 2025, Marvell posted revenue of $1.82 billion, slightly above analysts' estimates of $1.80 billion. Adjusted earnings per share (EPS) of $0.60 were in line with consensus expectations. The company's data center business, which saw revenue surge 78% year-over-year, was the primary growth driver.

However, Marvell's guidance for the current quarter painted a mixed picture. The company forecast revenue of $1.875 billion, plus or minus 5%, which was roughly in line with analysts' projections of $1.87 billion. Adjusted EPS guidance of $0.61, plus or minus $0.05, was slightly above expectations of $0.60.

One potential concern for investors was Marvell's rising inventory levels. The company reported 104 days of inventory outstanding, up from 97 days in the previous quarter and higher than its five-year average. This increase in inventory could signal weakening demand or potential oversupply issues.

"We closed fiscal year 2025 on a high note, delivering record fourth-quarter revenue of $1.817 billion," said Matt Murphy, Marvell's Chairman and CEO. "For the full fiscal year, we delivered a record $1.68 billion in operating cash flow and returned $933 million to stockholders through stock repurchases and dividends."