This article first appeared on GuruFocus.
Semiconductor maker Marvell Technology Inc. (MRVL, Financials) is heading into its Aug. 27 earnings announcement with investors anticipating another significant increase. The options market is pricing in about a 12.4% move up or down after the fiscal second quarter results.At the firm's current share price of $251.01, that predicts a move of around $31, bringing the stock near $282 on the upside or $220 on the downside. No wonder given Marvell's tremendous run. That's some volatility.Shares have surged over 196% this year on high demand for specialized AI chips and optical networking equipment, and its strengthened collaboration with Alphabet Inc. (GOOGL, Financials).Wall Street forecasts Marvell will post earnings of $0.93 per share, up around 39% from a year ago Revenue is predicted to increase by 35% to $2.71 billion. Investors will be watching data-center growth and guidance especially intently.The fear is expectations have increased just about as fast as the stock. Marvell's AI business forecast will matter after such a big runup and even good results could disappoint.Now the earnings report is a test of whether fundamentals can match the valuation investors have already placed on the company.