Marvell Technology shares dropped $52.96 Friday, wiping $1 trillion from chip stocks as sentiment reversed sharply after a record rally.
Marvell Technology (MRVL) shares collapsed 16% to $263.47 Friday, erasing a record high of $316.43 reached the prior session. The decline led the iShares Semiconductor ETF to a 10% drop, its steepest since March 2020, as chip stocks shed roughly $1 trillion in market value in a single session.
The sell-off followed a two-week rally fueled by Nvidia CEO Jensen Huang’s remark calling Marvell “the next trillion-dollar company.” The stock surged on sentiment rather than fundamentals, leaving it vulnerable when broader sector weakness emerged. Other major chipmakers also tumbled, with Micron (MU) down 13%, Intel (INTC) and AMD off 11%, and Nvidia (NVDA) sliding 6%, briefly dipping below a $5 trillion valuation.
The reversal underscored fragility in chip stocks after a rapid ascent, with Marvell’s decline marking the sector’s worst performance since the pandemic-driven crash.