Marvell Technology (MRVL) shares tumbled 6.6% in pre-market trading on June 4, pulling back to $281.80 after a blistering 90% rally in under three weeks. The stock had hit an all-time high of $324.20 just two sessions earlier, fueled by blowout earnings and a public endorsement from Nvidia CEO Jensen Huang, who called Marvell “the next trillion-dollar company” at Computex 2026.
The pullback reflects profit-taking after Marvell’s Q1 FY27 revenue surged 28% year-over-year to a record $2.418 billion, with Q2 guidance pointing to $2.7 billion. However, valuation fatigue set in as the stock’s P/E ratio sat at 99.59 and a beta of 2.29, leaving it vulnerable to a broader risk-off session. Escalating Middle East tensions, with oil nearing $100 a barrel, added to the pressure on high-multiple chip names.
Meanwhile, Broadcom’s (AVGO) strong fiscal Q2 results triggered a sector rotation, with its shares dropping 15% on concerns over competition in custom silicon and margin pressure. Advanced Micro Devices (AMD) fell 5.6% in sympathy. In contrast, Nvidia (NVDA) slipped just 0.8% to $214.75, outperforming peers as investors distinguished its dominant GPU ecosystem from Broadcom’s issues. Nvidia’s relative underperformance this year—up about 15% versus the PHLX Semiconductor Index’s 96% gain—shielded it from heavier selling.
Separately, Nvidia and Hyundai Motor Group are finalizing plans for an AI research and development hub in South Korea, with Jensen Huang expected to meet Hyundai’s executive chair on Friday. The initiative builds on an October 2025 partnership involving 50,000 Blackwell GPUs, and Morgan Stanley reiterated an Overweight rating on Nvidia with a $288 price target, citing expanding CPU opportunities.
