New York, June 10, 2026, 04:12 EDT
- Marvell shares fell 7.6% to $266.88 on Tuesday, giving back gains from the S&P 500-driven rally Monday.
- The chipmaker is set to join the S&P 500 before the market opens June 22.
- AI demand is still the main bull story here. But valuation and chip-sector swings are taking over the conversation now.
Marvell Technology shares slumped 7.6% to $266.88 on Tuesday, erasing the S&P 500 buzz as investors dropped chip stocks after a short bounce. Its market cap was about $238 billion, Nasdaq data showed.
Timing is key here. S&P Dow Jones Indices said Marvell will join the S&P 500 before the market opens June 22, taking the spot of Pool Corp in the main index. That switch can drive index funds, which track stock benchmarks, to buy Marvell shares near the change date.
Marvell jumped over 9% Monday after the index inclusion news, Reuters said, with AI demand and its cloud focus boosting gains. But that rally faded by Tuesday as chips broadly sold off.
Pressure wasn’t just on Marvell. The Philadelphia Semiconductor Index dropped 1.9% Tuesday after falling as much as 8.6%. The Nasdaq Composite shed 1%, and the S&P 500 was off 0.3%. Broadcom and Nvidia also moved lower, with Marvell’s decline hitting a market already questioning crowded AI bets.
Stocks saw selling across the board after the bounce faded, Michael O’Rourke, chief market strategist at JonesTrading, told Reuters. O’Rourke called the action “a momentum unwind,” meaning investors were unloading recent winners that had climbed fast. Reuters
Marvell’s still got plenty of appeal. It and Broadcom both design custom chips for cloud data centers. That market has picked up as tech firms look for options other than Nvidia’s pricey and hard-to-get AI chips. Reuters said Marvell shares had climbed around 59% since May 27 before slipping on Tuesday. The stock had been rising after Marvell projected more than $10 billion in fiscal 2029 revenue from its custom-chip business.
Marvell’s latest outlook is key here. On May 27, the company said first-quarter fiscal 2027 revenue rose 28% year-on-year to $2.418 billion. Marvell expects second-quarter revenue to hit $2.7 billion at the midpoint. CEO Matt Murphy pointed to “exceptional AI-related bookings” and said growth should keep speeding up this fiscal year. Marvell Technology, Inc.
Marvell is leaning on AI networking, too. The company unveiled the Teralynx T100 switch chip on June 1, rated at 102.4 terabits per second, aimed at both AI and cloud data centers. Sampling for customers will start this quarter, Marvell said. “Large cloud operators need networks that optimize latency, power and scalability simultaneously,” said Rishi Chugh, who heads Marvell’s data-center switch unit. Marvell Technology
But index demand might not be enough if profit-takers move out on fears the AI trade is already fully priced in. Marvell now trades around 92 times earnings, according to current market data. The P/E, or price-to-earnings ratio, shows what investors pay for each dollar of profit. Any cooling in AI orders, lag in custom-chip programs, or another sector rethink could turn the June 22 index addition into just a liquidity event instead of a clean start.
Marvell finds itself in the middle, with mechanical S&P 500-linked buying on one end and a rough spot for high-growth chip names on the other. The next regular session will show which side moves the stock more.
