Marvell Technology shares tumbled nearly 7% on Thursday to €242.85, snapping a blistering run that had been fuelled by none other than Nvidia CEO Jensen Huang. Earlier in the session, the stock had been hovering around €254.50, still down 2.27% on the day — a modest retreat compared with the 38% surge over the previous seven trading days.
The catalyst for that rally came at the COMPUTEX 2026 conference in Taipei, where Huang anointed Marvell as a “trillion-dollar company in the making.” It was a bold stamp of approval, backed by a $2 billion equity investment Nvidia made in March to lock in a long-term partnership centred on Marvell’s custom XPUs and networking solutions for Nvidia’s NVLink-Fusion platform. Huang described Marvell as an “indispensable” part of the hardware stack powering the ongoing AI infrastructure build-out.
Investors piled in, sending the stock from a 52-week low of €53.47 last September to an all-time high of €290.35 on June 3. That represents a quadrupling of the share price — and year to date, the stock had surged more than 218% before Thursday’s pullback, with some calculations putting the gain at 233.64% from the start of 2026.
The euphoria was not without fundamental justification. Marvell delivered a record first fiscal quarter for 2027, with revenue of $2.418 billion — up 28% year over year. The data-centre segment alone contributed $1.83 billion, or roughly 76% of total sales, underscoring the company’s deep pivot toward AI infrastructure. Operating cash flow came in at $638.8 million, and net income reached $718 million.
Management has set ambitious targets: $2.7 billion in revenue for the second fiscal quarter (a 35% increase), $11.5 billion for fiscal 2027, and $16.5 billion for fiscal 2028. The product roadmap supports that optimism. The new Teralynx T100 switch chip, boasting 102.4 Tbps throughput and 25% lower power consumption than its predecessor, is purpose-built for AI workloads.
Should investors sell immediately? Or is it worth buying Marvell Technology?
Analysts are taking note. Stifel’s Tore Svanberg lifted his price target from $230 to $321, maintaining a buy rating based on 55 times expected calendar 2027 earnings. The call reflects a conviction that Marvell is transitioning from a diversified chip supplier into a pure-play AI networking powerhouse — a shift that CEO Matthew Murphy drove home at Computex by arguing that the future of AI scaling hinges on connectivity.
Yet the technical picture looks overheated. The 14-day relative strength index stood at 76.7, while another measure put it as high as 83.6 — deep in overbought territory. The annualised 30-day volatility hovered around 111%, a level that market watchers attributed to a gamma squeeze following heavy options activity in recent days. The stock was trading 75% above its 50-day moving average and more than 175% above its 200-day average.
Institutional investors own 83.5% of the shares, and insiders have sold $32 million worth of stock over the past three months under pre-arranged trading plans. That is no cause for alarm, but it suggests that even those closest to the business are not waiting indefinitely for valuations to expand further.
Marvell’s story is compelling — a company that has reshaped its revenue mix from data centres accounting for less than 10% a decade ago to more than three-quarters today, underpinned by acquisitions of Celestial AI and XConn in 2026. The trillion-dollar vision that Huang outlined may yet materialise if the networking and custom-chip demand from AI continues to scale. But for now, the stock is pricing in a great deal of that future, and Thursday’s pullback served as a reminder that even the best narratives have their limits.
Ad
Marvell Technology Stock: Buy or Sell?! New Marvell Technology Analysis from June 13 delivers the answer:
The latest Marvell Technology figures speak for themselves: Urgent action needed for Marvell Technology investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from June 13.
Marvell Technology: Buy or sell? Read more here...
