NEW YORK, June 22, 2026, 18:01 EDT
- Marvell ended its debut session in the S&P 500 down 0.9% at $307.86.
- The chipmaker is up over 260% so far this year, with demand for AI infrastructure giving the stock a lift.
- Investors are balancing index-fund buying with high valuations and a packed chip trade.
Marvell Technology shares traded lower on Monday, dropping in their first session as part of the S&P 500, after a strong rally that turned the chipmaker into a large AI infrastructure play for Wall Street.
Shares finished the session off 0.9% at $307.86, with a day range of $298.18 to $314.17. The stock fell further in late trading, recently changing hands at $305.94, according to MarketWatch data. Volume hit 48.37 million, topping the 65-day average of 39.84 million shares.
Marvell and Flex joined the S&P 500 before the open as part of the index’s quarterly rebalance. S&P Dow Jones Indices said the changes aim to keep the S&P 500 more in line with large-cap U.S. names. Pool Corp and Campbell’s came out.
Index additions can trigger buying by passive funds, which track indexes and have to hold new names to match the benchmark. With Marvell, a lot of that buying was already in the price.
Bigger moves in the indexes didn’t offer much help. The Nasdaq Composite dropped 1.32% and the S&P 500 slipped 0.37% Monday, pulled down by weaker megacap tech names. The Dow Jones Industrial Average managed to add 0.29%, Reuters reported. Now all eyes turn to Micron’s results on Wednesday for a new test of the chip rally.
Marvell is still one of the big gainers for 2026. MarketWatch reports the stock is up 262.27% so far this year, trading between $61.44 and $329.88 over the past 52 weeks. The PHLX Semiconductor Index has doubled in 2026, but Marvell stands out as one of the top names, while Nvidia and Broadcom have trailed in that group.
Shares have been climbing as cloud firms keep putting big money into AI data centers, betting that Marvell’s custom chips and networking hardware are needed to move all that data. Interconnect tech handles the connections for thousands of processors to communicate quickly enough to train and operate AI models.
Marvell reported in late May that fiscal Q1 revenue hit $2.418 billion, up 28% year over year, a record for the company. CEO Matt Murphy said Marvell had “exceptional AI-related bookings” and expects faster revenue growth through fiscal 2027, with data-center demand as the driver. Marvell Technology, Inc.
The company said its custom chip business should bring in more than $10 billion in revenue in fiscal 2029. Morningstar analyst William Kerwin told Reuters the guidance suggests “$5 billion in incremental revenue from FY28 to FY29 exclusively from one business, portending another robust growth year in FY29.” Reuters
Rivals are in the race. Broadcom and Marvell both make custom AI and other chips for cloud giants like Amazon and Alphabet’s Google, pitching themselves as options to Nvidia’s top hardware. Last week, Reuters said startup Architect Labs raised $24 million to speed up and lower the cost of custom-chip design. That shows others are moving in.
Nvidia has played a role in Marvell’s recent narrative. Nvidia CEO Jensen Huang said Marvell could be the next “trillion-dollar company” during an appearance with Marvell CEO Matt Murphy at Computex in Taipei earlier this month. Reuters reported Nvidia put $2 billion into Marvell earlier this year to support customers pairing Marvell’s custom AI chips with Nvidia’s networking products and processors. Reuters
Analysts are still behind the recent run in the stock. WSJ data shows the consensus rating is “Buy,” but the average price target is $247.55 and the median is $240. Both are under Monday’s close. The highest target is $385. The Wall Street Journal
Marvell needs to keep hitting its targets with little room for error. The stock, which trades at over 100 times earnings according to MarketWatch, could get squeezed if AI spending slows, if its custom chip business ramps slower than expected, or if margins get squeezed after deals. A move away from pricey semiconductor stocks could hurt too. Index buying might keep investors holding Marvell. It won’t keep the price propped up.
