What Happened?
A number of stocks fell in the morning session after the AVGO earnings overhang and the stronger-than-expected jobs report combined to drive one of the broadest global chip selloff of the year.
The damage spread globally: South Korea's Kospi fell 5.5%, with Samsung down 6.4% and SK Hynix nearly 10%. European names followed: ASML fell 3.8% and Infineon lost more than 6%. Broadcom's guidance miss reset expectations for the pace of hyperscaler AI chip spending, removing the sector's most visible growth catalyst.
The 172,000-payroll print then eliminated near-term rate cut hopes and introduced rate hike risk by year end per CME FedWatch. Semiconductor valuations, built on aggressive multi-year earnings assumptions, are acutely sensitive to these discount rate movements.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Semiconductor Manufacturing company Marvell Technology (NASDAQ:MRVL) fell 7.9%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company IPG Photonics (NASDAQ:IPGP) fell 7.5%. Is now the time to buy IPG Photonics? Access our full analysis report here, it’s free.
Zooming In On Marvell Technology (MRVL)
Marvell Technology’s shares are extremely volatile and have had 38 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 previous big move we wrote about was 3 days ago when the stock gained 29% on the news that Nvidia CEO Jensen Huang called the company "the next trillion-dollar company" during his keynote at Computex Week in Taipei.
The endorsement was not rhetorical. Nvidia recently committed $2 billion in investment into Marvell, and Huang's explanation was pointed: AI data centers are built on disaggregated computing (thousands of chips spread across a facility) and that architecture only functions with the right connectivity infrastructure. "That's the reason why Marvell is so essential," he said. The endorsement lands on top of already exceptional fundamentals.
On May 27, Marvell reported record Q1 FY27 revenue of $2.418 billion, up 28% year-over-year, with management describing AI-related bookings as "exceptional." The company raised its full-year FY27 revenue target to approximately $11.5 billion and said custom silicon, its bespoke AI chip business for hyperscalers, was on track to grow more than 20% in FY27 and to more than double in FY28. Q2 guidance of $2.7 billion, representing 35% year-over-year growth, came in well ahead of estimates. Heading into the session, Marvell's market cap was just under $192 billion; Huang's trillion-dollar call implied more than a five-fold increase from that level.
Marvell Technology is up 223% since the beginning of the year, and at $289.15 per share, it is trading close to its 52-week high of $316.43 from June 2026. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $5,990.
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