Marvell Technology Plummets 1.95%: What’s Fueling the Selloff Amid Sector Volatility?

Summary
• Marvell Technology (MRVL) trades at $70.66, down 1.95% intraday after opening at $71.71
• Sector peers like Intel (INTC) plunge 6.93%, signaling broader semiconductor sector weakness
• India’s $4.6B semiconductor projects and U.S. tariff threats dominate sector news

Marvell Technology’s sharp intraday decline has drawn attention as the semiconductor sector grapples with mixed signals. With the stock trading near its 52-week low of $47.09 and a 30-day support level at $71.94, the move reflects broader sector jitters. Recent geopolitical tensions, including U.S. tariff threats and India’s aggressive chip-making push, have amplified volatility. The stock’s 1.95% drop—its largest intraday decline since early 2025—has triggered a surge in put options activity, particularly around the $69–$71 strike range.

Bearish Momentum Intensifies Amid Sector-Wide Pressure
Marvell’s selloff aligns with a broader semiconductor sector correction, driven by three key factors. First, Intel’s -6.93% intraday plunge—a sector leader’s collapse—has spooked investors, dragging MRVL down with it. Second, U.S. President Trump’s recent announcement of impending tariffs on steel and semiconductor chips has heightened uncertainty, with analysts warning of potential supply chain disruptions. Third, India’s $4.6B semiconductor projects, while bullish for long-term growth, have intensified near-term competition, pressuring MRVL’s market share. Technically, the stock’s RSI at 29.2 (oversold) and a bearish MACD histogram (-0.519) confirm short-term bearish momentum.

Semiconductor Sector Volatility: MRVL Trails Behind Intel’s Sharp Decline
The semiconductor sector’s 0.89% intraday gain masks sharp divergences. While NVIDIA and Broadcom (AVGO) trade near 12-month highs, MRVL’s -2.18% YTD return lags the sector’s 24.68% gain. Intel’s -6.93% plunge—a 50-year low—has amplified sector-wide anxiety, with MRVL’s -1.95% drop reflecting its vulnerability to macroeconomic headwinds. India’s $4.6B chip projects, meanwhile, could further erode MRVL’s pricing power in the mid-to-long term.

Capitalizing on Volatility: ETFs and Options for MRVL’s Bearish Play
• GraniteShares 2x Long MRVL Daily ETF (MVLL): -4.26% intraday
• RSI: 29.2 (oversold)
• MACD Histogram: -0.519 (bearish)
• Bollinger Bands: 71.76 (lower band) vs. 76.52 (middle band)
• 200D MA: $83.13 (well above current price)

MRVL’s technicals suggest a short-term bearish bias, with key support at $71.76 (Bollinger lower band) and resistance at $76.52. The GraniteShares 2x Long MRVL Daily ETF (MVLL) offers leveraged exposure but is down -4.26% intraday, reflecting the stock’s weakness. For options, two contracts stand out:

• MRVL20250829P69 (Put, $69 strike, 8/29 expiry):
- IV: 92.19% (high volatility)
- Leverage Ratio: 20.21%
- Delta: -0.410 (moderate sensitivity)
- Theta: -0.079 (moderate time decay)
- Turnover: $601,565 (high liquidity)
- Payoff (5% downside): $1.33 per contract
- Why it stands out: High IV and liquidity make this a strong short-term bearish play.

• MRVL20250829P71 (Put, $71 strike, 8/29 expiry):
- IV: 98.53% (extreme volatility)
- Leverage Ratio: 14.69%
- Delta: -0.481 (moderate sensitivity)
- Theta: -0.074 (moderate time decay)
- Turnover: $447,253 (high liquidity)
- Payoff (5% downside): $0.84 per contract
- Why it stands out: Extreme IV and high turnover make this ideal for aggressive short-term bearish bets.

Trading Setup: Aggressive bears should target MRVL20250829P69 for a 5% downside scenario. If the stock breaks below $71.76, consider scaling into MRVL20250829P71. For ETF exposure, MVLL’s -4.26% decline suggests caution, but its 2x leverage could amplify gains if MRVL rebounds.

Backtest Marvell Technology Stock Performance
The backtest of MRVL's performance after an intraday plunge of -2% shows favorable short-to-medium-term gains. The 3-Day win rate is 52.54%, the 10-Day win rate is 55.39%, and the 30-Day win rate is 61.38%, indicating a higher probability of positive returns in the immediate aftermath of such events. The maximum return during the backtest period was 8.71% over 30 days, suggesting that MRVL often exhibits a rebound following significant intraday declines.

MRVL’s Crucial Crossroads: Watch for $71.76 Support and Sector Catalysts
Marvell Technology’s 1.95% intraday drop has created a pivotal moment for investors. The stock’s proximity to its 30-day support at $71.94 and 200D MA at $83.13 suggests a potential rebound if buyers step in. However, sector headwinds—including Intel’s -6.93% plunge and U.S. tariff threats—remain critical risks. Immediate focus should be on the $71.76 Bollinger lower band: a break below this level could trigger a test of the 52-week low at $47.09. For now, the GraniteShares 2x Long MRVL Daily ETF (MVLL) and the MRVL20250829P69 put option offer the most compelling short-term plays. Action Insight: Monitor the $71.76 support level and Intel’s performance—both could dictate MRVL’s near-term direction.