What's Going On With Marvell Technology Stock Friday?

Marvell Technology Inc. (NASDAQ:MRVL) stock gained Friday as investors returned to beaten-down semiconductor names and reassessed the outlook for AI infrastructure spending, data-center construction and valuations after a sharp technology selloff earlier in the week.

Semiconductor Stocks Recover From Sharp Selloff

Marvell’s rebound followed a technology-led rout that erased about $3.2 trillion in U.S. market value in a single session. The stock closed lower by 12% on Thursday.

The Nasdaq 100 fell 6.4%, while the S&P 500 dropped 4.4%, as investors questioned the pace of AI infrastructure spending and weighed potential restrictions on data-center development.

AI-linked semiconductor stocks absorbed some of the steepest declines. NVIDIA Corp. (NASDAQ:NVDA) fell 9.3%, Qualcomm Inc. (NASDAQ:QCOM) dropped 9.5%, Broadcom Inc. (NASDAQ:AVGO) slid 10%, and Micron Technology Inc. (NASDAQ:MU) sank 17%.

Friday’s rebound came as investors moved back into growth and semiconductor names after that selloff.

AI Infrastructure Spending May Slow, but Demand Remains

Raymond James CIO Larry Adam said the AI investment cycle remains intact and continues to see opportunities in semiconductor infrastructure and hyperscalers.

Tech bull Dan Ives expects AI spending to continue as well, although over a longer timeline as data-center growth slows and Big Tech capital-spending growth peaks earlier.

Their views suggest the debate now centers less on whether AI infrastructure spending disappears and more on how quickly projects move forward.

Bill Baruch Adds to Marvell Position

Blue Line Capital founder and CIO Bill Baruch told CNBC Wednesday that he bought more Marvell after the stock had fallen about 30% from the prior week’s high.

Baruch said his firm funded the purchase with part of the cash it had raised after trimming about 5% of its technology exposure.

Those reductions included positions in NVIDIA, Micron, Broadcom, Meta Platforms Inc. (NASDAQ:META) and Arm Holdings Plc (NASDAQ:ARM).

Baruch said Marvell’s valuation multiple had compressed from roughly 45 times to 24 times, while EPS was growing about 40% year over year and an estimated 78% over the next 12 months.

He also said he likes Marvell’s acquisition strategy over time, particularly the addition of photonics capabilities. Baruch believes combining those capabilities with Marvell could strengthen the company’s position as the AI theme develops and potentially take some business from Broadcom.

Technical Analysis

Marvell remains under pressure despite Friday’s rebound. The stock trades 36% below its 20-day simple moving average (SMA), 40.7% below its 50-day SMA and 24.9% below its 200-day SMA.

Its relative strength index (RSI) stands at 24.85, below the oversold threshold of 30. This suggests selling pressure may be excessive, potentially setting up a short-term recovery.

However, the 20-day SMA remains below the 50-day SMA, signaling continued weakness.

The stock faces resistance near $185.04, while the $137.07 area serves as a key near-term support level.

MRVL Price Action

Marvell Technology shares were up 2.47% at $136.85 at the time of publication Friday, according to Benzinga Pro data.

Photo via Shutterstock