Shares of Marvell Technology (MRVL) retreated in extended trading on Wednesday, even as the data-center chipmaker delivered better-than-expected fiscal second-quarter results and raised its full-year guidance, falling short of elevated Wall Street expectations.

Revenue reached a record $2.73 billion, surpassing the $2.71 billion analysts had projected. Adjusted earnings per share came in at $0.94, edging past the $0.93 consensus estimate, while gross margin hit 58.9%, slightly ahead of the 58.8% forecast. Despite the beat, the stock dropped more than 5% in after-hours action.

Options market activity on Thursday suggested that traders had braced for significant volatility in the stock following the heavyweight earnings report from Nvidia (NVDA). Year-to-date, the shares have surged an impressive 184%.

The company also lifted its full-year outlook. "AI-related demand remains exceptionally strong, and we anticipate further acceleration in revenue growth through the remainder of fiscal 2027," the CEO stated. For the fiscal third quarter, management projects adjusted EPS of $1.10, plus or minus $0.05, on revenue of $3.15 billion—both figures topping the Street's expectations of $1.08 in adjusted EPS and $3.03 billion in revenue.