Marvell Technology Inc. (MRVL) stock plummeted 5.09% in the pre-market trading session on Tuesday, underperforming the broader market. The semiconductor company, known for its infrastructure solutions, faced selling pressure amid rising concerns over intensifying competition in the AI chip market.

The company's pre-market decline comes as tech giants like Amazon, Google, and Microsoft co-founder Bill Gates highlighted the increasing competition in the AI chip space. Gates specifically warned that Nvidia, a market leader in AI chips, faces growing challenges from other players working on similar technologies, including other big tech companies developing their own AI chips.

Additionally, the emergence of DeepSeek, a Chinese company that claims to have developed a ChatGPT-like AI model at a fraction of the cost compared to US companies like OpenAI and Anthropic, has raised concerns about the potential overinvestment in AI infrastructure by US firms. This development questions the need for companies to spend billions of dollars on powerful chips like those offered by Nvidia and could potentially impact demand for Marvell's advanced custom chips.