Marvell Technology shares plummeted 6.37% intraday on Tuesday, caught in a sweeping sell-off across artificial intelligence-linked semiconductor stocks as investors grew increasingly anxious about rising costs and intensifying competition from China in the chip sector.

The decline was part of a broader rout in the semiconductor industry. Optical networking giant Corning tumbled 17% after underwhelming guidance overshadowed its better-than-expected earnings, dragging down the entire sector. Dutch chip-tool maker ASML extended its losses following reports that a Chinese state-backed company was mass-producing chip-making machines, fueling fears of growing competition. The Philadelphia Semiconductor Index has now retreated nearly 20% from its all-time high, approaching bear market territory, with peer stocks including Intel, AMD, Micron Technology, and NVIDIA all trading lower.

Adding to the pressure, momentum trading strategies have suffered their steepest drawdown in four years, with retail-heavy tech stock portfolios falling over 25% from their June highs. As a stock with elevated retail participation, Marvell Technology remains particularly exposed to this systematic de-risking dynamic, with sector-wide selling pressure showing no signs of abating.