Marvell Technology’s 20% Weekly Drop Masks a Record Revenue Story and Nvidia Backing

Marvell Technology's stock plunged 43% from a 52-week high despite a $2B Nvidia investment and record data-center revenue, driven by a market rotation from tech to defensive sectors and cloud capex slowdown.

Nvidia’s decision to pump $2 billion into Marvell Technology in late March was meant to signal that the two companies would collaborate closely on next-generation AI interconnects, not compete. Yet by the first week of June, Marvell shares had touched a 52-week high of €290.35, only to shed more than 20% of their value in a single trading week shortly thereafter. The whipsaw captures the peculiar position of a company whose fundamentals are accelerating but whose stock is being dragged down by forces far beyond its control.

The sell-off is not a referendum on Marvell’s business. Analysts agree that the driver is a broad market rotation away from richly valued technology stocks toward defensive sectors such as energy. Semiconductor names have taken the brunt of the repositioning, and Marvell — with a year-to-date gain of over 126% still intact — was a natural target for profit-taking. The slide gathered pace as cloud hyperscalers tempered their capital expenditure plans, prompting fears that the first wave of AI infrastructure spending is giving way to a digestion phase. Orders for optical interconnects and custom chips — Marvell’s bread and butter — are expected to slow temporarily, a headwind that has also hit Micron, SK Hynix, and Samsung.

None of this, however, changes the record numbers the company posted for its fiscal year ending February 2026. Data-center revenue hit an all-time high of $6.1 billion, lifting total revenue to $8.2 billion — a 42% jump from the prior year. The custom-silicon business is now running at an annualized rate of $1.5 billion, supported by 18 design wins across the largest cloud operators. Marvell builds custom processors for Amazon’s Trainium, Microsoft’s Maia AI accelerators, and Meta’s new data-processing units. That breadth of customer exposure should, in theory, insulate the company from a downturn at any single hyperscaler.

The Nvidia partnership adds another layer. Through the NVLink-Fusion platform, Marvell’s interconnect technology is being woven directly into Nvidia’s GPU ecosystem, positioning it as a bridge between the worlds of general-purpose AI chips and custom silicon. The $2 billion investment from Jensen Huang’s company amounts to an unusually public vote of confidence — one that the market has chosen, for now, to overlook.

The chart reflects the tension. From the June 3 peak of €290.35, the stock has plunged more than 43% to close last Friday at €165.12. The relative strength index on a 14-day basis stands at 35.3, approaching but not yet confirming oversold territory. Marvell trades 21% below its 50-day moving average of €209.38, yet remains comfortably above its 100- and 200-day averages — a pattern that typically signals a sharp correction inside a long-term uptrend rather than a trend reversal.

Wall Street’s average price target of €220.77 implies roughly 34% upside from the current level, a gap that reflects how models have not kept pace with the velocity of the recent sell-off. Whether that gap closes to the upside depends on one unresolved question: Is the hyperscaler pause just a momentary breather before a historically large capex ramp, or is the market repricing a growth story that had overshot reality?

For now, Marvell’s stock is acting as a high-volatility proxy for that debate. The company’s custom-silicon pipeline continues to expand, Nvidia has placed a multibillion-dollar bet on its technology, and revenue is at record levels. But in a market rotating away from risk, those facts matter less than the sentiment of the moment. Clarity will only return when the hyperscalers themselves send clearer signals about their spending intentions. Until then, the shares will remain a stress test — not of Marvell’s business, but of how much the broader market is willing to pay for the AI bet.