What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) jumped 1.6% in the morning session after semiconductor stocks rallied as OpenAI announced a partnership with Samsung Electronics and SK Hynix. The deal aimed to increase the supply of advanced memory chips and grow the number of AI data centers in Korea as part of OpenAI's 'Stargate initiative.' This news created a positive wave across the chip sector, lifting shares of companies like Marvell. Investors saw the partnership as a sign of strong and growing demand for the technology that powers artificial intelligence, benefiting the entire industry.
After the initial pop the shares cooled down to $85.66, up 2.2% from previous close.
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What Is The Market Telling Us
Marvell Technology’s shares are extremely volatile and have had 36 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 7 days ago when the stock gained 5% on the news that the company announced a new $5 billion stock repurchase authorization and a $1 billion accelerated share repurchase program, signaling strong confidence from management. The news was followed by bullish comments from CEO Matt Murphy, who reaffirmed the company's positive outlook on its custom accelerator programs and provided a rough minimum guide of 18% revenue growth in fiscal 2027.
Marvell Technology is down 24.6% since the beginning of the year, and at $85.66 per share, it is trading 32.1% 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 $2,154.
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