We have recently released an article entitled
Why These 10 Companies Saw Sharp Declines Today
In this piece, we will examine how Marvell Technology, Inc. (NASDAQ:MRVL) measures up against its peer stocks.
The stock market recovered from the prior day’s declines, with all key indexes closing up due to investor satisfaction over the central bank’s choice to maintain interest rates at their current levels.
On Wednesday afternoon, the Federal Reserve kept rates steady at a range of 4.25 percent to 4.5 percent, saying that it was not in a hurry to cut rates and could still “wait and see” the impacts of President Donald Trump’s tariff policies.
The Dow Jones surged by 0.70 percent, the S&P 500 climbed by 0.43 percent, and the Nasdaq advanced by 0.27 percent.
Despite the overall positive sentiment in the markets, several key indicators diverged from this trend due to a string of negative announcements that led investors to sell off assets.
For compiling this list, we took into account solely those stocks that have a market capitalization of at least $2 billion and a daily trading volume of $5 million or more.
A production line in a semiconductor plant, where employees are stationed at various points.
Marvell Technology, Inc. (NASDAQ:MRVL)
Marvell Technology, Inc. (NASDAQ: MRVL) dropped by 8.02 percent on Wednesday, marking the third consecutive down day, closing at $56.31 each. Investor confidence took another hit due to a negative forecast for revenues in the first quarter of Marvell’s fiscal year 2026.
While Marvell Technology, Inc. (NASDAQ:MRVL) affirmed the midpoint of the revenue guidance at $1.875 billion, it said it now expects a plus or minus 2 percent margin, narrower than the plus or minus 5 percent earlier.
Moreover, the firm announced the postponement of its investor day, which was initially set for June 10, due to the fluctuating macroeconomic conditions. However, they emphasized the continuous advancements within their AI specialized hardware division.
Earlier this year, Marvell Technology, Inc. (NASDAQ:MRVL) entered into a definitive agreement with Infineon Technologies AG for the sale of its automotive Ethernet business, Brightlane, for $2.5 billion. The sale was expected to generate revenues between $225 million and $250 million for fiscal year 2026.
Overall MRVL
ranks 8th
on our list of Wednesday’s worst performers. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about this
cheapest AI stock
.
READ NEXT:
20 Top AI Stocks You Should Consider Buying Today
and
30 Top Stocks to Purchase Currently as Recommended by Millionaires
.
Disclosure: None. This piece was initially published at
Insider Monkey
.
