The stock price of Marvell Technology (MRVL) experienced a significant decline on Friday, following a remarkable surge of over 50% in just six trading sessions that had propelled the shares to a record high, prompting investors to take profits after the substantial recent gains.

As of early Friday trading, Marvell's stock was down approximately 8.6%, ranking it among the biggest decliners within the Nasdaq index. This pullback came immediately after the stock closed at a new all-time high of $316.43 on Thursday, a session where it gained 4.9% and led the gains among components of the Philadelphia Semiconductor Index. In the preceding six trading days, Marvell had accumulated a gain of roughly 52%.

The direct catalyst for Marvell's recent rally was comments from NVIDIA (NVDA) CEO Jensen Huang. On June 2nd, Huang publicly stated at the Taipei International Computer Show that Marvell has the potential to become "the next trillion-dollar company." This remark ignited a buying frenzy, sending Marvell's stock soaring by over 32% that day, marking the company's largest single-day percentage gain in history and adding more than $50 billion in market capitalization in one session. Huang also emphasized the critical importance of connectivity in AI data centers, highlighting the key role played by Marvell's networking and connectivity chips. Just three months prior, NVIDIA had announced a $2 billion investment in Marvell to deepen their collaboration on custom AI chips and NVLink fusion technology.

Despite the selling pressure on Friday, Marvell's fundamental outlook remains robust. The company's fiscal Q1 2027 earnings report, released in late May, showed record revenue of $2.418 billion, representing a 28% year-over-year increase. The data center segment contributed approximately 76% of the total revenue. CEO Matt Murphy projected a 35% revenue growth for the second quarter, with further acceleration in full-year revenue growth anticipated.

The broader tech sell-off added extra pressure on Marvell. Broadcom's recent earnings report, which failed to raise its AI chip sales guidance, disappointed market expectations, leading to a single-day stock plunge of over 12% and triggering a wave of selling across the chip sector. Analysts pointed out that following the significant rally, valuations for AI chip stocks have reached elevated levels in recent years, resulting in a substantial accumulation of short-term profit-taking positions.