Shares of Marvell Technology (MRVL) plunged 6.18% in pre-market trading on Friday, despite the company reporting first-quarter results that were largely in line with expectations. The sharp decline comes as analysts express concerns about the lack of significant upside in the chipmaker's data center and artificial intelligence (AI) businesses.

Marvell reported adjusted earnings per share of 62 cents and revenue of $1.9 billion for Q1, slightly beating analysts' estimates of 61 cents per share and $1.88 billion in revenue. The company also provided Q2 guidance above Wall Street expectations, forecasting adjusted EPS between 62 cents and 72 cents and sales of $2 billion.

However, the results and outlook failed to impress investors and analysts, who were looking for more substantial growth in Marvell's AI-related segments. Melius Research analysts noted in a research report, "In short, without data center and AI upside in the year, the stock is a 'show-me story' and may have trouble breaking out." This sentiment was echoed by several other analysts, with many cutting their price targets for Marvell stock.

The market's reaction highlights the high expectations surrounding AI-focused chip companies, especially following the recent strong performance of industry leader Nvidia. As competition in the AI chip market intensifies, investors appear to be scrutinizing companies' ability to capitalize on the growing demand for AI technologies.