NEW YORK, June 4, 2026, 18:58 (EDT)
- Marvell finished the day up 4.9% at $316.43. The stock slipped in late trading, pulling back after hours.
- The rise happened even though Broadcom’s results pulled most chip stocks down.
- Traders look to S&P 500 rebalancing speculation and Nvidia-tied AI demand for the next tests.
Marvell Technology climbed 4.9% to close at $316.43 on Thursday, outperforming a weak chip group as traders stuck with the AI-networking angle and bets on an S&P 500 move. Shares touched $321.50 then fell to $305.18 in after-hours trade, according to Google Finance. Nearly 86.2 million shares changed hands, more than double normal volume.
Marvell is now trading more on index news than its AI story. MarketWatch said S&P 500 index changes are expected Friday, and Marvell, whose market cap is much higher than other eligible names, is seen as a likely pick for the index.
Getting into the S&P 500 wouldn’t change anything for Marvell’s factories, customers, or revenue on its own. But for flows, it can matter. Index funds tracking the S&P often have to pick up shares of new members, which can add some short-term demand for the stock.
Semis didn’t keep up with the market. The Dow closed at a record and the S&P 500 added 0.4%, but the Nasdaq fell. Broadcom missed on quarterly revenue and shares fell, pulling AI-chip names lower; Reuters said Marvell gained 4.9%, but AMD, Micron and Qualcomm dropped from 2.6% to 7.7%.
Nvidia CEO Jensen Huang spoke at Computex in Taiwan earlier in the week, appearing on stage with Marvell CEO Matt Murphy. Huang said Marvell’s networking gear is “essential” for AI data centers and suggested Marvell could become “the next trillion-dollar company,” according to Investopedia. Investopedia
Nvidia bought $2 billion in Marvell Series A convertible preferred stock as of March 31, according to a Marvell filing. Those preferred shares can be converted into up to 21.778 million Marvell common shares. That update followed a pointed comment.
Marvell is giving bulls some numbers to work with. The company’s first-quarter fiscal 2027 revenue hit a record $2.418 billion last week, and it set guidance for second-quarter revenue at $2.7 billion, give or take 5%. CEO Murphy said Marvell sees growth speeding up through fiscal 2027, mostly on its data-center performance.
Marvell has a straightforward pitch for its latest product: as AI clusters get larger, they need faster chip-to-chip connections. The company launched the Teralynx T100 switch chip on June 1, boasting 102.4 Tbps capacity. That’s terabits per second, measuring the rate data travels across a network. Marvell says the T100 is built for AI and cloud data centers and will ship samples to customers this quarter.
“With AI workloads getting bigger and more complex, hyperscalers need network setups that lower latency, cut power, and scale well,” said Rishi Chugh, a vice president and GM at Marvell’s data-center switch group, in the statement. Alan Weckel at 650 Group called the Teralynx T100 design a step up for latency, power use, and ownership costs as data centers grow. Marvell Technology, Inc.
AI chip stocks may not have much margin for error now. Broadcom’s slide showed just how high the bar is. Matt Britzman at Hargreaves Lansdown said the move was “a classic case of very high expectations meeting a market that wanted perfection.” Bernstein’s Stacy Rasgon said Broadcom could “take a pause” over the next few quarters. Reuters pointed out Marvell was trading at 61.7 times forward earnings, while the S&P 500 was at 27.94. Reuters
Marvell faces a clear risk: AI orders might not turn into revenue as fast as bulls expect, customers could slow spending, and the S&P committee could skip over the name once more. Shares fell after the bell, suggesting sellers are still in the mix.
S&P 500 reshuffle comes next. After that, investors want to see if the Nvidia tie-up, the T100 launch, and Marvell’s data-center pipeline can deliver the growth the stock price is now assuming.
