Shares of Marvell Technology (MRVL) plummeted 5.05% in pre-market trading on Friday, as investors reacted to the company's first-quarter results and ongoing concerns about its artificial intelligence (AI) and data center business growth. The chipmaker's performance failed to meet the high expectations set by the recent AI-driven rally in the semiconductor sector.

Marvell reported Q1 revenue of $1.9 billion, slightly above analysts' estimates of $1.88 billion. However, the company's guidance for the second quarter, while above Wall Street expectations, did not provide the upside that investors were hoping for in the AI segment. This lack of substantial growth in the data center and AI businesses has led some analysts to view Marvell as a "show-me story" that may struggle to break out without clear upside in these key areas.

The disappointing outlook prompted several analysts to cut their price targets for Marvell. Deutsche Bank lowered its target to $85 from $100, while Raymond James reduced its target to $90 from $110. These downgrades, coupled with concerns about Marvell's dependence on Amazon's second-generation AI training chip, have contributed to the negative sentiment surrounding the stock. Despite these challenges, many analysts maintain a positive long-term outlook on Marvell, citing its potential in the AI and custom chip markets, but acknowledge that near-term growth may be limited.