Marvell Technology shares fell 20% over two days in early June 2026 as the AI chip sector suffered a broad sell-off that erased more than $1.3 trillion in market value. The Philadelphia Semiconductor Index dropped 10.3% on June 5, its worst day since March 2020, after Broadcom missed its AI revenue whisper number by roughly $1.2 billion and a stronger-than-expected jobs report dampened rate-cut hopes. Marvell, which makes custom AI chips and high-speed networking infrastructure for hyperscalers like Amazon, Alphabet, and Microsoft, posted record revenue of $8.195 billion in fiscal 2026 and record first-quarter fiscal 2027 revenue of $2.418 billion, while raising its full-year outlook. The company also announced the industry's first 102.4 terabits-per-second switch for AI data centers, and its CEO shared a keynote stage with Nvidia CEO Jensen Huang, who called Marvell a potential next trillion-dollar company. Despite the sell-off, Marvell's custom silicon design wins hit an all-time record in fiscal 2026, and hyperscaler AI infrastructure spending commitments total more than $725 billion in 2026 alone.
Marvell Technology Group LtdAI chip sector sell-off driven by Broadcom's AI revenue miss and rate-cut hopes dampened, despite Marvell's own record revenue and raised guidance.
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