Investing.com – Marvell Technology stock (NASDAQ:MRVL) fell 2% Friday in premarket trading as worries over a shortage of chips overshadowed its guidance for revenue touching $1.14 billion in the ongoing quarter.
"Ultimately, what they care about is capacity? 'Can you supply me? If you can't get me the parts, why would I agree to a price increase?”, Marvell CEO Matt Murphy told Reuters.
Marvell designs and makes chips that go into data centers and vehicles. It also gives designs to companies like Taiwan Semiconductor for making chips.
A report Thursday in The Wall Street Journal said TSMC plans to raise prices of its lower-end chips by as much as 20% and those of its higher-end products by 10%. Murphy told Reuters TSMC has not issued any formal communication to Marvell about the reported price increases.
While demand has exceeded supply of digital devices, experts are now questioning how long the party can last given that consumers may now begin to defer their purchases.
Marvell guided for third-quarter revenue to touch $1.14 billion with plus/minus 3% variation.
Net revenue in the second quarter jumped 48% from last year, to $1.08 billion. Because of rising costs, the net loss per share was 34 cents, bigger than the 24 cent per share loss in last year's second quarter.