August 31, 2025
Tech News
Marvell Technology faced a significant drop in its stock, falling 11.3% in premarket trading due to a disappointing outlook for data center demand. Investors had high hopes for AI-focused chips, yet recent results indicate a cooling market.
The company’s forecast revealed a quarterly revenue below expectations, triggering a sharp selloff. Marvell’s stock fell as much as 12% in after-hours trading and extended losses to nearly 18.9% during regular market hours, according to multiple sources. Marvell’s CEO Matthew Murphy noted that data center revenue for the upcoming quarter would be flat, which surprised analysts who anticipated growth, particularly for its custom application-specific integrated circuits (ASICs).
Compounding its challenges, a recent report indicated that Microsoft had delayed its AI chip rollout until 2028 or later. This news raised concerns about Marvell’s role, given its supply of critical components for Microsoft’s projects. Additionally, rivals like Azure and Google Cloud have outpaced Amazon Web Services, Marvell’s significant customer.
Despite a reported second-quarter revenue of $2.01 billion that met expectations, the forecast of $2.06 billion for the third quarter fell short of the $2.11 billion average forecast by analysts. Furthermore, Marvell’s custom ASIC business seems to be experiencing “lumpiness,” indicating unpredictable demand which worries investors.
Meanwhile, Khalid Ashmawy has recently raised $3 million to kickstart Munify, a cross-border neobank aimed at the Egyptian diaspora. With a personal understanding of the costly and slow remittance process, Ashmawy created Munify to facilitate faster, more affordable money transfers.
After joining Y Combinator’s Summer 2025 cohort, Munify has already begun seeing traction among Egyptians abroad who seek better banking options. The startup, which promises to build its own banking infrastructure, aims to address the high fees associated with traditional systems, offering an alternative for businesses and remote workers.
As part of its innovative approach, Munify is set to capture a piece of the nearly $30 billion annual remittance market in Egypt, where existing wiring methods often prove inefficient. Ashmawy’s personal experiences as an immigrant drive the mission to alleviate financial burdens on individuals wanting to support their families back home.
Tech Explained
Application-Specific Integrated Circuit (ASIC) – ASICs are custom-designed chips tailored for specific tasks, such as processing AI workloads. They are essential in optimizing computing performance for large tech companies by providing efficient processing power for specialized applications.
Data Center – A data center is a facility that houses computer systems and associated components, such as telecommunications and storage systems. It is critical for cloud computing and the hosting of services provided by companies like Amazon and Microsoft.
Stock Market – The stock market is a public market for the trading of company stocks and derivatives at an agreed price. Changes in stock prices reflect investor sentiment and financial performance, impacting companies like Marvell heavily when expectations are not met.
Banking – Banking involves the business of receiving deposits and making loans. It serves as a crucial mechanism for managing money, including facilitating remittances for individuals wanting to send funds internationally, as addressed by Ashmawy’s fintech, Munify.
Remittance – Remittances refer to funds transferred by a foreign worker to their home country. This financial flow is vital for economies, especially in developing countries like Egypt, where it constitutes a significant source of income for many families.
