Marvell's stock surged after new AI chip deals prompted a wave of institutional buying and a series of validating price target increases from analysts.
Semiconductor chip stocks, including Nvidia, Broadcom, TSMC, Intel, Arm, Marvell are down due to the end of waivers for chipmakers to send tech to China.
Marvell Technology has gotten torched over the last six months - since December 2024, its stock price has dropped 30.9% to $75.35 per share. This may have investors wondering how to approach the situation.
Marvell reportedly announced several updates at its custom AI silicon event – the company raised its total addressable market (TAM) estimate to $94 billion by 2028, up by 26% from its previous forecast.
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL)
jumped 8.7% in the morning session after the company announced a breakthrough in making chips for Artificial Intelligence (AI), revealing the industry's first 2nm custom Static Random Access Memory (SRAM - tiny computer memory). Think of it as making the brain of AI chips much faster and less power-hungry, which is a huge deal for companies building massive AI systems.
Marvell Technology Inc (NASDAQ:MRVL) shares are surging Wednesday after multiple analysts reiterated positive ratings following the company's custom AI investor event.
Marvell Technology introduces PIVR power solutions for hyperscalers like Amazon, Meta Platforms, Microsoft, and Google to boost AI and cloud infrastructure ROI. It also launches 2nm custom SRAM for high-performance chips in data centers, with potential to drive $4 billion in AI revenues this year.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes.
This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
While its stock has lagged, Marvell's role powering AI data centers with custom silicon and essential optical interconnects continues to accelerate quickly.
