From Huang's Blessing to Broadcom's Blip: Marvell's Wild Week Captures AI Chip Volatility

Marvell shares slide 4% after Broadcom disappoints, but analysts raise targets as revenue jumps 28% and AI infrastructure pivot accelerates.

The euphoria that sent Marvell Technology shares into the stratosphere has given way to a more sobering reality — at least for the moment. After surging more than 30% in a single session on Nvidia CEO Jensen Huang’s glowing endorsement, the stock lost nearly 4% on Thursday, sliding to €250.55 on the Xetra exchange. The catalyst for the pullback came not from Marvell itself, but from a sector heavyweight that failed to ignite fresh enthusiasm.

Broadcom reported record revenue but declined to raise its long-term artificial intelligence sales forecast. That was enough to rattle investors already sitting on hefty paper gains. The resulting sell-off swept through the broader AI hardware space, dragging Marvell down alongside rivals. Market participants view the retreat as a healthy bout of profit-taking after the stock had rocketed roughly 90% in just three weeks. The Relative Strength Index had climbed above 81 — a clear overbought warning that made a technical cooldown almost inevitable.

Just days earlier, the mood could not have been more electric. Speaking at the Computex trade show in Taipei, Huang anointed Marvell as “essential” to the AI ecosystem and a potential trillion-dollar company. The market seized on the remark: Marvell’s market capitalization ballooned by some $60 billion in a single day, the largest daily gain in the chipmaker’s history. The stock closed the session at around €290 on June 2 and touched a 52-week high of €324 in the subsequent session. Even after the pullback, the Xetra listing still showed a 48% weekly gain, though the RSI remained deeply overbought at 87.6.

Huang’s words were backed by capital. Nvidia had already invested $2 billion in Marvell back in March, a deal aimed at integrating custom processors and networking solutions into Nvidia’s NVLink platform. The partnership underscores Marvell’s transformation from a traditional semiconductor supplier into a foundational provider of AI infrastructure.

Wall Street analysts have been quick to adjust their models. Stifel’s Tore Svanberg lifted his price target to $321 — the highest on the Street — up from $230, arguing that the market is increasingly recognizing Marvell’s pivot to AI infrastructure. HSBC set a $300 target, while Morningstar raised its fair value estimate from $130 to $235. Of the 44 analysts covering the stock, 38 recommend buying. Stifel’s euro-denominated target for the Xetra listing stands at roughly €295, suggesting further upside.

The fundamentals support the bullish narrative. In the first quarter of fiscal 2027, Marvell’s revenue climbed 28% year over year to $2.42 billion, with the data center segment contributing between 73% and 75% of total sales. That share stood below 10% just a decade ago. The company recently unveiled the Teralynx T100, a 3-nanometer network switch for cloud data centers that processes 102.4 terabits per second and promises up to 25% lower power consumption versus rival products. Meanwhile, its electro-optics division — which accounts for roughly half of data center revenue — is expected to grow 90% by 2027.

Management has set ambitious targets: $11.5 billion in revenue for the current fiscal year and $16.5 billion by fiscal 2028. The AI networking market for data centers is projected to reach $100 billion by 2030. Marvell already holds a 15% to 20% share of the custom silicon space.

Yet risks lurk beneath the surface. A high concentration of accounts receivable among its three largest customers and billions in leasing obligations tied to AI infrastructure weigh on the balance sheet. The stock, despite its recent retreat, remains 240% above its start-of-year level and 350% higher than 12 months ago. Valuation hurdles are steep, but Marvell’s strategic perch inside the AI ecosystem remains as compelling as ever.