Three trading days earlier, Marvell Technology (MRVL) had the market in awe.
Nvidia CEO Jensen Huang stood on a stage in Taipei and called the chip designer “the next trillion-dollar company.” Traders responded by giving the stock its biggest one-day gain yet.
At Thursday’s close, Marvell was at a record high.
At the close of Friday, it was the stock of large chips with the worst performance in the market.
The decline began in the rest of the sector and Marvell had more room to fall.
When a stock rises so much, so fast, more on hope than new numbers, it maintains little cushion once the mood changes.
Friday was the day the mood changed, and it became tough across the chip complex.
Marvell Stock Leads Worst Chip Selloff Since 2020 Crisis
Shares of Marvell (MRVL) fell more than 16% on Friday, closing at $263.47 after trading at a record high of $316.43 the day before.
That single drop sent the iShares Semiconductor ETF down about 10%, its weakest session since March 2020, according to congress.net.
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The damage was widespread.
Micron (MU) fell 13%, Intel (INTC) and AMD each lost about 11%, and Nvidia (NVDA) fell 6%, briefly falling below a $5 trillion valuation, the same report notes.
Across the group, chip stocks were on track to lose roughly $1 trillion in combined market value in a single session.
How a billion-dollar call prepared Marvell for the fall
The setup for Friday’s drop It was built during the previous two weeks.
Marvell reported record first-quarter fiscal 2027 revenue of $2.418 billion on May 27, up 28% from a year earlier, and guided current quarter sales to $2.7 billion, its earnings report shows.
Then came Huang.
Speaking alongside Marvell CEO Matt Murphy in Taipei, the Nvidia boss called Marvell the next trillion-dollar company, and the stock rose about 32% in one day, CNBC reported.
Nvidia had also recently invested around $2 billion in Marvell, CNBC noted, deepening the partnership between the two chipmakers.
As of Friday, Marvell was up about 223% for the year, according to financial data tracked by Yahoo Finance.
It is worth knowing that an action price with high expectations It has little protection when feelings begin to break down.
What Really Broke AI Chip Trading on Friday
Two things happen at the same time.
Broadcom (AVGO) reported earnings on June 3, but declined to raise its AI chip revenue forecast for 2026, CNBC reported, and shares fell about 12% the next day.