Marvell Technology (NASDAQ:MRVL) experienced a 12% drop intra-day today despite announcing better-than-expected first-quarter results for 2025.

The company reported earnings per share (EPS) of 24 cents and revenues of $1.16 billion, representing a 12% decline compared to the same period last year. Despite the year-on-year decrease, revenues exceeded the mid-point of the company's guidance provided in March 2024 by $11 million.

Marvell's CEO Matt Murphy highlighted that Q1 revenue was bolstered by higher-than-anticipated demand from the AI sector. The company's data center revenue increased by 87% year-over-year, driven by the launch of their custom AI programs and a strong base in electro-optics revenue.

Murphy expressed optimism for the second half of the fiscal year, anticipating continued growth in data centers and the start of a recovery in enterprise networking and carrier infrastructure.