Why Marvell Technology, Inc. (MRVL) Nosedived on Wednesday

We recently published an article titled Why These 10 Firms Nosedived Today. In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against the other stocks.

The stock market bounced back from the previous day’s losses, with all major indices finishing higher as investors cheered the central bank’s decision to keep interest rates unchanged.

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 rallied by 0.70 percent, the S&P 500 increased by 0.43 percent, and the Nasdaq grew by 0.27 percent.

Beyond the major indices, bucked a broader market optimism as investors sold off on a series of disappointing news.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

An assembly line in a semiconductor factory, with workers at their stations.

Marvell Technology, Inc. (NASDAQ:MRVL)

Marvell Technology, Inc. (NASDAQ:MRVL) tumbled by 8.02 percent on Wednesday, a third straight day, to finish at $56.31 apiece as investor sentiment was dampened further by a pessimistic revenue outlook for the first quarter of 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.

Additionally, the company said it has postponed its investor day originally scheduled for June 10, citing the dynamic macroeconomic environment, but underscored the ongoing progress in its AI custom silicon business.

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 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.