Marvell Technology (MRVL) Stock Slides After Hours on December 9, 2025: AI Jitters, New Deals and What to Watch Before the Market Opens December 10

Marvell Technology, Inc. (NASDAQ: MRVL) is back in the spotlight — and not in the way bullish AI investors were hoping.

After a wave of headlines questioning the stability of its biggest AI customers, the chip designer’s shares extended Monday’s sell‑off on Tuesday, December 9, 2025, even as the company rolled out new AI‑infrastructure products and leaned into its long‑term growth story.

Below is a detailed look at how Marvell stock traded after the bell on December 9, what drove the move, and the key things traders and longer‑term investors should know before the U.S. market opens on December 10.

How Marvell Stock Traded on December 9 — and After the Bell

On Tuesday, December 9, Marvell shares continued their slide:

Close: $88.90
Change: –$3.10 (–3.37%) vs. Monday’s $92.00 close ^[1]
Intraday range: $91.69 high / $88.04 low
Volume: ~22.4 million shares, roughly in line with the recent average of about 22.3 million ^[2]

According to Yahoo Finance and MarketScreener data, after-hours trading nudged the stock only slightly higher, with MRVL quoted around $89.1–$89.5, up roughly 0.2–0.7% versus the regular close — not nearly enough to erase the day’s slide. ^[3]

Zooming out:

MRVL has dropped from $98.91 on Friday, December 5 to $88.90 on Tuesday, December 9 — a decline of a little over 10%. ^[4]
The stock is down about 16–20% over the past year, depending on the data provider, with a 52‑week range of roughly $47.09 to $127.48. ^[5]

In other words: this week’s sell‑off comes after a big AI‑driven run‑up and a post‑earnings rally — and is happening in very high‑expectations territory.

Why MRVL Is Under Pressure: Fears Around Amazon and Microsoft

The core of the current drama: investors are suddenly questioning how secure Marvell’s AI‑chip relationships are with Amazon Web Services (AWS) and Microsoft.

1. Reports of lost Amazon Trainium designs

A widely circulated note from Benchmark analyst Cody Acree downgraded Marvell from Buy to Hold, arguing that industry checks suggest Marvell lost Amazon’s next‑generation Trainium 3 and Trainium 4 AI chip designs to Taiwan‑based Alchip Technologies. ^[6]

That’s a big perceived problem because:

Data center revenue accounts for roughly 73% of Marvell’s sales, and has been the main engine of its AI comeback.
That segment surged over 80% year‑over‑year in the latest quarter, driven by custom AI chips and interconnect products sold to hyperscalers like Amazon and Microsoft. ^[7]

Benchmark’s downgrade (and related commentary) helped trigger:

A ~7% drop on Monday, December 8, as Marvell gapped down from $98.91 and traded sharply lower on heavy volume. ^[8]
Continued selling on Tuesday as the story spread across Barron’s, MarketWatch, Yahoo Finance and other outlets, framing Marvell as a major loser from Amazon’s evolving in‑house AI‑chip strategy. ^[9]

2. Microsoft reportedly flirting with Broadcom

At the same time, The Information reported that Microsoft is in talks with Broadcom to design future data‑center AI chips — a potential shift away from Marvell as Microsoft’s sole custom‑chip partner. That report was highlighted by Investor’s Business Daily, which noted Marvell shares fell about 7% Monday while Broadcom stock rose nearly 3%. ^[10]

MarketWatch summarized investor anxiety bluntly: two simultaneous competitive concerns — possible lost Amazon designs and a Microsoft pivot to Broadcom — have put Marvell’s AI positioning under a harsh spotlight. ^[11]

3. Insider selling adds to the noise

Adding fuel, EVP Mark Casper disclosed the sale of 1,253 Marvell shares at $101 on December 5, worth about $126,553, trimming his stake by roughly 12%. That Form 4 filing and follow‑up coverage noted that Marvell stock traded lower following the transaction. ^[12]

While this is a small sale relative to the company’s size, it has contributed to the narrative that smart money may be locking in gains after a strong AI‑driven run.

The Bullish Counter‑Narrative: “Noise” vs. Reality in Marvell’s AI Pipeline

Despite the sell‑off, several heavyweight voices are arguing that the market is overreacting.

1. JPMorgan and Marvell management push back

In a detailed research note, JPMorgan:

Reaffirmed its Overweight rating and $130 price target on MRVL.
Said its primary research and conversations with Marvell indicate “no ASIC program share loss at either Microsoft or AWS” across current and next‑generation AI XPU programs. ^[13]
Highlighted that Marvell’s custom AI chip (ASIC) programs at Microsoft and AWS “are progressing well”, including Microsoft’s 3nm Maia AI XPU ramp in 2026–2027. ^[14]

A separate Benzinga summary of JPMorgan’s meetings with Marvell management adds more color:

Marvell confirmed that AWS’s multi‑generation Trainium XPU program remains on track to ramp in 2026, with purchase orders secured for Trainium 3 through that period.
The company similarly confirmed that Microsoft’s 3nm Maia AI XPU program is on schedule to ramp in the back half of 2026 and into 2027.
Management believes “AI XPU attach wins” could drive about $2 billion of additional revenue by calendar 2028, and expects strong growth from its electro‑optical business as 1.6T DSPs and 800G connectivity ramp across multiple GPU/XPU platforms. ^[15]

2. Stifel and others say “block out the noise”

Coverage from Barron’s and other outlets notes that Stifel has kept a Buy rating and $114 price target, calling much of the customer‑defection chatter “misleading” and arguing that any meaningful share reallocation by hyperscalers would take years to show up in Marvell’s reported revenue — likely not until around fiscal 2029. ^[16]

In other words, even if Microsoft or Amazon were exploring secondary partners, the current multi‑year design‑win pipeline is unlikely to vanish overnight.

3. Street still broadly bullish — with caveats

Despite the two‑day rout:

MarketBeat data shows Marvell retaining a “Moderate Buy” consensus rating, with an average price target around $111.56 and a high end near $130. ^[17]
TradingView/consensus data indicates a broader high target of $156 and a low around $90, highlighting just how wide the range of outcomes analysts are modeling. ^[18]
A fresh Barchart column published today notes that MRVL is still seen as a “Strong Buy” by many on Wall Street, pointing to its 33% gain over the past three months and powerful AI/data‑center tailwinds — while acknowledging that the stock trades at about 45x forward earnings, a premium that leaves little room for execution missteps. ^[19]

The takeaway: sentiment is wobbling short‑term, but the institutional view of Marvell as a key AI‑infrastructure player has not flipped bearish.

Fundamentals Still Look Strong: Earnings, Guidance and Celestial AI

It’s easy to forget that the current sell‑off comes just days after Marvell pleased the market with earnings and an ambitious M&A move.

Q3 FY2026 results: AI data centers are still the engine

For the quarter reported on December 2, 2025, Marvell delivered: ^[20]

Revenue: $2.07 billion, up 36.8% year‑over‑year, in line with expectations.
Adjusted EPS: $0.76 vs. $0.74 consensus.
Q4 revenue guidance: around $2.2 billion (±5%), above the ~$2.18 billion Wall Street expected.
Q4 EPS guidance: midpoint of $0.79, slightly ahead of consensus.
Operating margin: improved to 17.2%, from a deeply negative level a year earlier.
Data center revenue: up about 38% year‑over‑year, driven by AI connectivity and custom silicon.

CEO Matt Murphy reiterated that Marvell sees roughly $10 billion in total revenue next fiscal year, including 25% growth in data‑center revenue and 20% growth in custom chips, anchored by hyperscaler demand. ^[21]

Celestial AI acquisition: building a silicon‑photonics powerhouse

Alongside earnings, Marvell announced a $3.25 billion deal to acquire Celestial AI, a startup specializing in silicon photonics — using light instead of electricity to connect chips and memory at very high speeds. Key details: ^[22]

Consideration: $1 billion in cash plus 27.2 million Marvell shares (about $2.25 billion).
Strategy: Celestial’s photonic interconnect tech will feed into Marvell’s next‑gen AI infrastructure products, where bandwidth and energy efficiency are key differentiators versus rivals like Broadcom and Nvidia.
Long‑term revenue plan: Marvell expects Celestial to contribute $500 million in annualized revenue by Q4 FY2028, doubling to $1 billion by Q4 FY2029.
Amazon angle: As part of the deal, Amazon received a warrant to buy up to roughly 1 million Marvell shares (about $90 million of stock) based on its purchases of photonic‑fabric products through 2030 — a notable signal that Amazon expects to keep buying from Marvell in that domain. ^[23]

Put simply, the acquisition strengthens Marvell’s story as an AI‑infrastructure “arms dealer,” not just a one‑off custom chip designer.

New December 9 Company News: “Golden Cable” and PCIe 6 Retimers

While the stock sold off, Marvell was also busy announcing new AI‑infrastructure products on December 9.

1. Golden Cable initiative for active electrical cables (AECs)

Marvell unveiled its “Golden Cable” initiative, a strategic program aimed at accelerating the ecosystem for active electrical cables (AECs) that link dense racks of AI accelerators inside hyperscale data centers. ^[24]

Highlights:

The program offers validated cable architectures, advanced firmware, calibration data and reference designs to make it easier for partners to build AECs that meet hyperscaler requirements.
It targets the transition to 1.6T (1.6‑terabit) networking, where high‑density, short‑reach copper links are a cost‑ and power‑efficient alternative to optical solutions.
Industry analyst 650 Group estimates the AEC market could grow from $644 million in 2025 to around $1.4 billion by 2029, and Marvell is positioning itself at the center of that growth. ^[25]

2. Growing adoption of Alaska P PCIe 6 retimers

In a separate press release the same day, Marvell announced broad industry adoption of its Alaska P PCIe 6 retimers, which are used to maintain signal integrity for 64 GT/s PCIe 6.0 links inside AI‑heavy servers and clusters. ^[26]

Key points:

Major server vendors are using Marvell’s PCIe 6 retimers in GPU and XPU platforms, as well as in retimer cards for general‑purpose servers.
Multiple cable and optical‑module partners are embedding Marvell retimers into active electrical and active optical PCIe cable solutions.
The products are designed to connect AI accelerators, GPUs, XPUs, CPUs, SSDs and CXL devices across racks and clusters, enabling scalable, low‑latency AI fabrics. ^[27]

These updates don’t resolve the Amazon/Microsoft design‑win question, but they underscore that Marvell is deeply embedded in the physical plumbing of AI data centers, beyond any single chip project.

Forecasts, Technicals and Options: How the Market Is Pricing the Next Move

Short‑term trading around MRVL is likely to remain volatile.

Implied volatility on Marvell options is around 53%, with a three‑day expected move of about $3.46, or ~3.9%, implying a near‑term trading range roughly between $85 and $92. ^[28]
Technical analysis services note that the 10‑day moving average recently crossed above the 50‑day (a bullish signal) on December 4, before this week’s pullback — illustrating how quickly sentiment can flip when new information hits AI‑sensitive names. ^[29]

The chart levels aren’t everything, but they show that the market expects big day‑to‑day swings as investors digest conflicting headlines.

As always, forecasts — whether from human analysts or algorithmic models — are not guarantees, and anyone considering trades should weigh position size, time horizon, and risk tolerance carefully.

What to Watch Before the U.S. Market Opens on December 10, 2025

Heading into Wednesday’s session, here are the key things investors will be focused on:

1. Overnight and pre‑market price action

After-hours trading on December 9 was relatively muted, with MRVL hovering around the high‑$80s, slightly above the close. ^[30]

On Wednesday morning, traders will be watching:

Whether continued selling pushes MRVL toward the mid‑$80s, below Tuesday’s intraday low near $88.
How pre‑market volume compares with the recent average; heavy early volume could suggest institutions are still actively repositioning.

2. Any new statements from Marvell, Amazon or Microsoft

So far, the strongest counter‑narrative has come via JPMorgan’s research and Benzinga’s summary of management meetings, not via a standalone Marvell press release specifically addressing the Benchmark downgrade. ^[31]

Before and after the bell, investors will be watching for:

Any formal comment from Marvell via investor relations or regulatory filings.
Indirect signals from Amazon or Microsoft — for example, remarks about Trainium or Maia roadmaps in their own communications — that might confirm or contradict market fears.

3. Fed policy backdrop and broader tech sentiment

The sell‑off in MRVL is happening against a macro backdrop where:

U.S. indices have been choppy ahead of a key Federal Reserve decision, with the S&P 500 near record levels and traders largely expecting another rate cut. ^[32]
Chip stocks have been volatile as markets debate whether AI growth is plateauing or merely pausing. ^[33]

If the Fed leans more dovish than expected, growth and AI names could catch a bid, potentially easing some pressure on MRVL — though company‑specific headlines may still dominate.

4. Moves in peer names: Broadcom, Nvidia, other AI infrastructure plays

Given that much of the MRVL story now hinges on Microsoft and Amazon’s custom‑chip choices, traders will also watch:

Broadcom (AVGO), which has been cited as a possible new design partner for Microsoft’s future AI chips. ^[34]
Nvidia (NVDA) and other AI‑heavy semis as a sentiment barometer for the AI‑infrastructure trade overall. ^[35]

If Broadcom continues rallying on the expectation of incremental Microsoft business, that could cap near‑term rebounds in MRVL until the customer narrative is clearer.

5. How investors digest the December 9 product announcements

Finally, the market will be considering whether the Golden Cable initiative and PCIe 6 retimer adoption are enough to remind investors that Marvell:

Sits at the heart of AI data‑center connectivity, not just custom CPUs/XPUs.
Has multiple growth engines — interconnect, custom silicon, and now future silicon‑photonic products via Celestial AI. ^[36]

If longer‑term investors lean into that story while short‑term traders focus on customer risk, volatility could remain elevated but two‑sided, with both sharp bounces and air‑pockets possible.

Bottom Line: High Expectations, High Volatility

Marvell Technology’s stock is caught between two narratives:

A bearish, headline‑driven story about potential customer defections and a rich valuation that leaves little room for disappointment.
A bullish, fundamentals‑driven story built on strong AI data‑center growth, a photonics‑heavy roadmap, and reassurances from both management and bullish analysts that core hyperscaler programs remain intact.

After a 10%+ slide since Friday and a 3.4% drop on Tuesday alone, MRVL heads into the December 10 open with elevated risk and elevated opportunity:

If fears about Amazon and Microsoft prove overblown, the combination of strong guidance, Celestial AI, and new connectivity products could make this pullback look like a classic AI dip‑buying opportunity.
If, however, any concrete confirmation of lost design wins emerges, the stock could face another leg down, especially given its premium multiple and AI‑heavy revenue mix.

For now, the key for traders and investors is not to anchor solely on any single headline — bullish or bearish — but to consider:

Time horizon (trade vs. multi‑year investment),
Position size relative to portfolio risk, and
How comfortable they are owning a high‑beta AI‑infrastructure name in the middle of a noisy customer‑confidence storm.