Marvell Shares Plummet 18.6% on Surging $6.2B Trading Volume as Q2 Revenue Misses Estimates

Marvell Technology (MRVL) shares plummeted 18.60% on August 29, 2025, with a trading volume of $6.2 billion, marking a 124.06% surge from the previous day. The stock’s sharp decline followed the release of second-quarter results that met earnings expectations but fell short of revenue forecasts. Revenue for the quarter reached $2.006 billion, slightly below the $2.01 billion estimate, despite a 58% year-over-year increase driven by strong data center demand. Management projected third-quarter revenue of $2.06 billion, below the $2.11 billion consensus, citing near-term challenges in data center and custom silicon shipments.

Analysts adjusted price targets, reflecting mixed sentiment. While CEO Matt Murphy highlighted robust AI demand for custom silicon and electro-optics, as well as recovery in enterprise networking markets, near-term guidance dampened investor optimism. The stock broke below key technical levels, with critical support identified at $62, $56, and $50. Analysts noted that Marvell’s long-term growth potential remains tied to AI-driven design wins and optical product demand, though near-term revenue volatility persists due to inventory adjustments and business divestitures.

Backtest results indicate that Marvell’s stock closed at $64.76, down 16.15%, as of the latest check on August 29. The price action reflects heightened sensitivity to guidance revisions and macroeconomic uncertainties, including U.S. chip export restrictions. Investors are advised to monitor the $78 overhead level for potential resistance during recovery attempts.