Marvell Technology (MRVL) shares tumbled 5.00% over the past 24 hours, as a broad selloff in semiconductor stocks intensified amid mounting concerns over Chinese competition and the sustainability of AI infrastructure spending.

The decline was part of a wider rout in the chip sector, with the Philadelphia Semiconductor Index falling over 4% on Tuesday. Investor sentiment was hit by the initial public offering of Chinese memory-chip maker CXMT, which became the most valuable company listed in mainland China, raising fears of increased competition for established players. Additionally, doubts about the returns on massive AI data-center investments dragged on the sector, after Tesla and Alphabet reported negative free cash flow.

Corning's disappointing third-quarter revenue guidance further fueled the selloff, with its shares tumbling 13% and sparking a chain reaction across optical and memory chip stocks. Marvell Technology, which is closely tied to data infrastructure spending, was caught in the downdraft, falling alongside peers such as Micron Technology and Advanced Micro Devices.