Shares of Marvell Technology experienced a decline in after-hours trading on Wednesday, despite the company reporting an upbeat earnings report and projecting a stronger revenue outlook fueled by robust demand in its data-center business.

The custom-chip maker, trading under the ticker MRVL, issued guidance for the current quarter ending in July, forecasting revenues between $2.7 billion, with a margin of error of 5%. This projection surpasses the average analyst revenue estimate of $2.6 billion compiled by FactSet. Furthermore, Marvell anticipates adjusted earnings per share to be 93 cents, plus or minus 5 cents, which favorably compares to the FactSet consensus EPS estimate of 90 cents.

Despite the positive financial outlook and strong demand in the artificial intelligence sector, the stock's dip suggests investor reaction to factors beyond immediate growth projections, potentially including broader market sentiment or specific valuation concerns.