This article first appeared on GuruFocus.

Sep 1 – Marvell Technology (NASDAQ:MRVL) saw its shares tumble nearly 18% on Friday after the company reported second-quarter results that came in slightly below Wall Street expectations. While the semiconductor maker missed revenue estimates by a narrow margin, the broader story shows a company still riding powerful growth trends in the data center and artificial intelligence markets.

The chipmaker posted quarterly revenue above $2 billion for the first time, representing 58% growth from a year earlier. Data center sales made up $1.5 billion, or roughly three-quarters of total revenue, underscoring Marvell’s reliance on AI-focused infrastructure spending by hyperscale customers such as Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG). Other business lines, including enterprise networking, carrier infrastructure, consumer, and automotive, accounted for the remaining share.

On the profitability side, Marvell delivered $1.2 billion in gross profit with a non-GAAP margin of 59.4%. Adjusted net income more than doubled year over year to $585.5 million, reflecting the company’s improving operating leverage. Management also guided for third-quarter revenue of about $2.06 billion, which at the midpoint implies 36% growth.

Despite the strong numbers, investors reacted negatively to the revenue miss and concerns over the foundry cycle, triggering the sharp sell-off. Analysts, however, note that Marvell trades below both its historical valuation multiples and the broader industry average. With data center capital spending accelerating and AI demand surging, many see the pullback as an opportunity rather than a red flag.

Marvell’s outlook suggests annualized revenue could surpass $10 billion by the end of fiscal 2026. While risks remain if hyperscalers slow AI spending or if margins weaken, the company’s positioning in semiconductors for cloud, AI, and networking continues to attract long-term investors.

Based on the one year price targets offered by 36 analysts, the average target price for Marvell Technology Inc is $88.42 with a high estimate of $135.00 and a low estimate of $64.31. The average target implies a upside of +40.65% from the current price of $62.87.

Based on GuruFocus estimates, the estimated GF Value for Marvell Technology Inc in one year is $98.65, suggesting a upside of +56.92% from the current price of $62.87.

ST. JOSEPH, Mo. (News-Press NOW) — City leaders are eyeing the next generation of cutting-edge technology to help grade and improve the condition of St. Joseph’s streets and roadways.

St. Joseph Public Works and Transportation is in the process of integrating new AI-powered software called Road AI, a type of specialized road maintenance software capable of detecting defects from cracking and fretting to edge deterioration and larger potholes.

“We’re trying to advance everything in Public Works and AI is the big thing right now,” St. Joseph Public Works and Transportation Director Abe Forney said. “This new technology will enhance the ability for our public works department to hit those potholes.”

A $15,380 contract for the new technology is set to be introduced for first reading at Tuesday’s City Council meeting and could be finalized later on Sept. 15.

The program operates by recording street surfaces using smartphones while an inspector drives the route. The video is uploaded nightly to a cloud-based AI program with condition ratings being available within hours.

Data is then exported to Excel and imported into Cartegraph — an operations and asset management software platform — for use in determining overlay lists, concrete repair lists and other maintenance priorities.

“It’ll also give us sign inventory that we’ve never had. So it’s looking at signs. It’s looking at our road conditions. It’s looking at crosswalks where they should be and bike trails that cross the road,” Forney said. “This technology is going to continue to grow.”

RoadAI’s technology will sharply boost efficiency and enhance the long-held process of having a supervisor drive and document 440 lane miles of roadway in St. Joseph.

If approved by council, Forney expects the city will be able to quickly integrate the new software and have it deployed for staff usage in short order. The software is part of a subscription service offered through company Vaisala Inc.

“Taking one of our employees and driving all the roads and him writing on a piece of paper what our road conditions are … this is going to be much better,” Forney said. “This technology is going to free them up to do other things that need attention.”

In the long run, he’s optimistic the AI-powered technology will provide cost savings for the department and could grow in usage in other areas. RoadAI’s website states the software is 50% less expensive that traditional road surveys.

The technology is one key part of the city’s new five-year street master plan, a strategy designed to address top concerns identified in a community survey launched earlier this year.

“The survey that just came out said that our road conditions are in poor shape. We all know that some of our roads need some attention,” Forney said. “There’s so many things that are out there that we can utilize to better our public works department.”