Why Marvell Technology Stock Has Plunged Today

Shares of Marvell Technology (NASDAQ: MRVL) have so far tumbled 9.1% on Tuesday to $212.90 after opening at $220.52 and sliding as low as $212.18, as investors yanked money out of high-flying semiconductor and artificial-intelligence stocks amid a broader market selloff.

The drop came a day after Marvell had surged more than 6% to around $235, part of a powerful rally that had also lifted memory and chip names as Wall Street rotated into AI infrastructure plays. That momentum has reversed sharply as rising Treasury yields rattled equities across the board.

The 30-year U.S. Treasury yield climbed to 5.333%, its highest close since June 2007, as a U.S.-Iran ceasefire expired without a lasting resolution, sending oil prices higher and triggering a global bond selloff. Growing fiscal deficits and heavy AI-related borrowing have added to worries about financing costs.

Semiconductor stocks have bore the brunt of the pullback, with Western Digital and SanDisk each shedding more than 6%, and Marvell and Seagate both giving up over 5% before losses deepened further for Marvell during the session.

Valuation concerns have also weighed on the stock. Marvell trades at roughly 49 times forward earnings and had been sitting more than 100% above some analysts’ fair-value estimates, leaving little room for error.

The selloff comes just ahead of Marvell’s high-stakes earnings report, scheduled for August 27, when investors will look for confirmation that AI-driven demand for its custom chips, optical connectivity and networking products justifies its lofty valuation.

Despite the sharp pullback, several analysts, including UBS, remain bullish on Marvell’s longer-term AI opportunity.