Marvell Technology's stock plummeted 5.04% during intraday trading on Tuesday, significantly underperforming the broader market which saw continued enthusiasm for artificial intelligence and technology names.

The sharp decline came amid a broader selloff in semiconductor stocks, with several chipmakers experiencing notable losses during the session. While other AI-related companies continued to advance, Marvell Technology stood out as one of the sector's notable laggards.

Analysts point to growing concerns about Marvell's elevated valuation as a key factor in the stock's weakness. Despite recent optimism fueled by NVIDIA CEO Jensen Huang's public endorsement of the company as a potential trillion-dollar enterprise, investors are questioning whether Marvell can achieve the explosive growth needed to justify its current price levels. The company trades at approximately 60 times forward earnings, significantly higher than peers like NVIDIA and Broadcom, raising concerns about sustainability amid increasing competition and potential earnings volatility.