What Happened?
Shares of networking chips designer Marvell Technology (NASDAQ: MRVL) fell 4% in the afternoon session after the company canceled all purchase orders with POET Technologies that were originally placed by Celestial AI, a firm Marvell recently acquired.
Marvell provided written notice for the cancellation, citing a breach of confidentiality by POET Technologies as the reason. The company alleged that POET had disclosed order and shipping information, which went against their agreement. This move created uncertainty about the business relationship and potential disruptions in future projects within the semiconductor sector, leading to a negative reaction from investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Marvell Technology’s shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 6.9% on the news that reports surfaced that the company was in talks with Alphabet's Google to co-develop two new custom chips for artificial intelligence (AI).
The potential partnership involved Marvell designing two specialized processors. One was a memory unit intended to work with and speed up Google's existing Tensor Processing Units (TPUs). The other was a new, dedicated chip built specifically for AI inference, which is the process of using a trained AI model to make predictions. This development was seen as a move that would deepen Marvell's integration into the Google Cloud ecosystem and solidify its role as a key hardware partner for major tech companies building out their AI infrastructure.
Marvell Technology is up 76.6% since the beginning of the year, and at $157.84 per share, it is trading close to its 52-week high of $165.56 from April 2026. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $3,437.
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