On Friday, Marvell (NASDAQ:MRVL) shares were down about 5 per cent in pre-open after the company delivered weaker-than-expected Q3 results and guidance.

The chipmaker reported an adjusted EPS of USD 0.57 on revenue of USD 1.54 billion (+27 per cent Y-o-Y) to miss the consensus for earnings of USD 0.59 per share on revenue of USD 1.56B. The data centre revenue stood at USD 627.3M, higher than the USD 611.8M estimate.

For Q3, the midpoint of the range implies EPS of USD 0.46 on revenue of USD 1.38B, a significant miss relative to the consensus of USD 0.62 on revenue of USD 1.61B. The company said it sees its adjusted gross margin for FQ4 at 64 per cent, again lower than the estimated 65.1 per cent.

Goldman Sachs analysts said MRVL delivered a significant reset but remains positive on the stock given its long-term growth profile. The analysts cut the price target to USD 54 from USD 62 per share to reflect the ongoing inventory correction.