Semiconductor giant Marvell Technologies (NASDAQ:MRVL) underperformed a weak market last month. The stock fell 11% compared to a 7% decline in the S&P 500, according to data provided by S&P Global Market Intelligence.
The drop didn't erase much of investors' recent gains, and shares are higher by 50% so far in 2019 compared to a 15% increase in the broader market.
Marvell announced two minor acquisitions last month, along with plans to sell its Wi-Fi connectivity business. But the bigger news for investors was the company's first-quarter earnings report, which in late May showed that sales beat management's forecast despite a soft selling environment.
Investors are excited about the potential for Marvell to win significant business as its customers roll out 5G wireless networking infrastructure later this year. In the meantime, CEO Matt Murphy and his team are expecting sales to rise 8% in the fiscal second quarter to around $650 million as the company continues posting modest net losses.