What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) jumped 3.3% in the morning session after it announced a collaboration with South Korean AI semiconductor company Rebellions to develop custom AI infrastructure. The partnership aimed to deliver high-performance, energy-efficient AI systems specifically for sovereign-backed AI projects in the Asia-Pacific and Middle East regions. Under the agreement, Rebellions planned to use Marvell's custom platforms, including advanced packaging and high-speed interconnect technologies, to design specialized AI accelerators. This move was seen as a strategic step for Marvell to tap into the growing market for government-supported AI initiatives, providing end-to-end solutions for large-scale AI inference, which is the process of using a trained AI model to make predictions.
After the initial pop the shares cooled down to $77.24, up 1.8% from previous close.
Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Marvell Technology’s shares are extremely volatile and have had 40 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 13 days ago when the stock dropped 4.3% after a cautious outlook from semiconductor equipment giant ASML sparked a broad sell-off across the sector, hitting chipmakers and equipment suppliers alike. The negative sentiment was triggered after the Dutch firm, whose complex machines are essential for producing advanced chips, warned it could no longer guarantee growth in 2026. ASML's management cited "increasing uncertainty driven by macro-economic and geopolitical developments," including the potential for new U.S. tariffs. As an industry bellwether, a company whose performance is seen as an indicator of the entire sector's health, ASML's comments are a key signal of future capital spending. The warning sent a chill through the market, as concerns grow that trade tensions could disrupt the highly globalized semiconductor supply chain and slow down investment from chip manufacturers.
Marvell Technology is down 32% since the beginning of the year, and at $77.24 per share, it is trading 38.7% 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 $2,200.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
