Marvell Technology entered 2025 with a high valuation, but shares fell by 29.9% in the first half due to concerns about competition and the impact of China’s DeepSeek release and Trump’s trade war. Despite meeting revenue and profit expectations, doubts lingered, leading to a rerating and a more reasonable valuation.

Marvell’s decline in the first half was largely attributed to its high starting valuation, which included expectations for growth in custom XPU chips for cloud clients like Amazon. Concerns over competition, particularly from Broadcom, and uncertainties in the AI chip market led to a post-earnings drop in Marvell’s stock price.

Marvell now trades at a more reasonable valuation, offering potential for a second-half comeback. The company has increased its estimates for the custom AI market size and expects growth in the Data Center total addressable market. A key factor for future success will be securing additional custom XPU customers beyond Amazon.

Investors considering Marvell Technology should weigh the risks and potential rewards. While the stock saw a decline in the first half of 2025, a more reasonable valuation and growth expectations in the AI market could lead to a rebound in the second half. It’s important to consider expert recommendations and historical stock performance.

Read more at Nasdaq: Why Marvell Technology Fell Nearly 30% in the First Half of 2025