Marvell's tepid revenue forecast reignites AI spending fears, shares slump
Marvell Technology tumbled 16% and dragged down rival chipmakers on Thursday, after an in-line revenue forecast gave investors another reason to be jittery about spending on AI infrastructure, as a years-long rally shows signs of cooling. Wall Street had looked to earnings from Marvell, a key supplier of custom AI chips to Big Tech, for signs of enduring demand that has powered U.S. market gains since ChatGPT ignited the generative AI boom in late 2022. But the company's current-quarter revenue forecast, $10 million above estimates, did little to allay fears about the need for big investments on AI infrastructure sparked by low-cost breakthroughs from Chinese startup DeepSeek.