What's Going On With Marvell Technology Stock?

Marvell Technology, Inc. MRVL shares are trading lower Thursday amid a sell-off in the semiconductor sector. 

The Details:

The Nasdaq 100, comprising 100 of the biggest non-financial tech stocks, fell 2.94% Wednesday to mark its worst day since 2022. Semiconductor stocks are pulling back as investors digest several recent developments, including the possible expansion of export restrictions to China, ASML Holding NV‘s ASML earnings release and comments from former President Trump regarding Taiwan. 

ASML led semiconductors lower Wednesday as its shares fell more than 12% after the company reported second-quarter numbers lower than the same period in the previous year and guided quarterly gross margin in the range of 50% to 51% versus expectations of 51.1%.

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Investors also considered comments from former President Donald Trump about Taiwan which cast doubt on the stability of the region critical to the manufacturing of semiconductors.  

"I know the people very well, respect them greatly. They did take about 100% of our chip business. I think, Taiwan should pay us for defense," Trump said in the Bloomberg Businessweek interview, published Tuesday.

Additionally, investors mulled a Bloomberg report that the Biden administration is considering imposing the most severe trade restrictions on China if companies continue giving the country access to advanced semiconductor technology.

According to data from Benzinga Pro, Marvell Technology shares are trading below the stock’s 50-day moving average of $71.48 on light volume Thursday. 

Should I Sell My MRVL Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Marvell Technology have increased by 5.44% in the past year. An investor who bought shares of Marvell at the beginning of the year would make a profit of $8.49 per share if they sold it today. The stock has fallen 8.98% over the past month, meaning an investor who bought shares on June 1 would see a capital loss of $1.55.

Marvell Technology shares have an all-time high of $91.51, representing 37.28% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Marvell’s stock currently has an RSI of 30.37, indicating neutral conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

MRVL Price Action: According to Benzinga Pro, Marvell shares are down 1.9% at $66.64 at the time of publication Thursday.

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