What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) fell 5.9% in the afternoon session as the major indices tumbled after the Trump administration confirmed that the planned 25% tariffs on imports from Canada and Mexico, two of the largest trading partners of the United States, would proceed as planned. The news added to the market's growing unease, which had been building since the start of 2025. For Wall Street analysts, investors, and businesses, the announcement underscored the urgent need to plan ahead and factor the potential downside of the tariffs into their financial forecasts. Key concerns included rising production costs, which are often passed on to consumers, and the risk of inflation, further heightening economic uncertainty.
The shares closed the day at $85.84, down 6.5% from previous close.
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What The Market Is Telling Us
Marvell Technology’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 22.6% on the news that the company reported strong third-quarter results that exceeded Wall Street's sales and earnings expectations. Sales grew by 19% sequentially amid unwavering AI demand, particularly in data center end markets. In addition, Marvell expects to significantly exceed the guide of $1.5B for AI revenue this year and is optimistic about achieving its $2.5 billion target for FY26. Looking ahead, its full-year revenue and EPS guidance also exceeded consensus estimates.
Zooming out, we think this was a good quarter with some key areas of upside. Additionally, CEO Matt Murphy addressed speculation about a potential move to Intel, firmly stating he is "All In" on Marvel. This dispelled any uncertainty that could stem from his potential exit, at least in the short term.
Marvell Technology is down 23.8% since the beginning of the year, and at $86.49 per share, it is trading 31.4% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $4,061.
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