Chipmakers are finding that good earnings aren’t enough to please wall street

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 – Good isn’t good enough. That’s trust investors previously poredish instrupts the information the infrastructure and devices at the heart of the ai economy, bidding the stocks up to history.

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 revionue forecast as well as its results for the latest Quarter was all ahead of the average analyst estimate, according to lseg, but wall street wanted more after the stoC Sored 83% in 2024.

“While Marvell Reported A Small Beat and Raise, the guide was definitely below boyside expectations,” Analysts at Cantor Wrote in a report Folling the results.

Nvidia Suffered a similar fate in late February, with its stock dropping 8.5% the day after the Leader in Ai Processors Reported Earnings And revenue that sailed past estimates. Shares of Advanced Micro Devices Fell 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 Plummeted 14% After Earnings on Wednsday and Another 10% DURING THURSDAY’s Session Despite Triple-Digit Revenue Growth and Upbeat Guidance.

The Vaneck semiconductor etf is Down Nearly 6% this week following last week’s 7% decline. The etf, whose leading components are nvidia, Taiwan semiconductor manufacturing co. and BroadcomSored 72% in 2023 and Nearly 39% Last Year.

The Challenge on Wall Street for Chipmakers underscores the pressure they’re under as the AI ​​Buildout Stretches into its fourth calendar year. Tarifs 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. Broadcom Shares Lost 6, DURING CHURSDAYI SESSISION In the Lead-up to Quarterly Earnings, But the Stock Popped 12% after after hours on better-that ResultsIncluding Strong Infrastructure and Semiconductor Revenue.