Marvell Plunges 17% Before S&P 500 Inclusion, Trades at 90x
MRVL•Marvell plunged 17% Friday—its largest one-day drop since last August—after a rally driven by Nvidia CEO Jensen Huang’s trillion-dollar endorsement and ahead of its S&P 500 inclusion on June 22. The shares trade at 90x forward earnings on $6 billion revenue, versus Broadcom’s 64x on $90 billion revenue and 48% AI growth.
1. Rally Driven by Nvidia Endorsement
Marvell’s stock rallied sharply in early June after Nvidia CEO Jensen Huang labelled the chipmaker as the next potential trillion-dollar company, sparking heavy investor demand for its custom AI and data-center networking solutions.
2. Worst One-Day Drop and S&P 500 Entry
On Friday, Marvell shares tumbled 17%, marking their steepest single-session decline since August, as profit-taking followed the prior gains; the company will join the S&P 500 on June 22, an inclusion set to attract additional passive investment flows.
3. Premium Valuation Versus Broadcom
Marvell trades at about 90x forward earnings on roughly $6 billion in annual revenue, compared with Broadcom’s 64x multiple on $90 billion revenue and 48% year-over-year AI growth, underscoring Marvell’s higher valuation and more concentrated customer base.
