Jim Cramer addressed Marvell Technology's recent stock slide, attributing the drop to broader semiconductor sector volatility and shifting investor expectations. The stock fell 8.3% in a single session, underscoring growing concerns about demand trends in data center and networking infrastructure.
- Marvell (MRVL) stock fell 8.3% in one session, closing at $107.85 on December 10, 2025
- 52-week high was $138.60, marking a 22% retracement from peak
- Q3 revenue growth slowed to 5.2% YoY, down from 12.7% in Q2
- Short interest increased to 4.8% of float, up from 3.1% in October
- SOX index down 6.1% over the past month amid AI capex reassessment
- Cramer cited network segment margin pressure and cloud spending delays as key concerns
Marvell Technology (MRVL) saw its share price drop 8.3% in a single trading day, prompting Jim Cramer to analyze the underlying factors behind the sell-off on a recent segment. Cramer noted that while Marvell’s fundamentals remain solid, investor sentiment has been rattled by recent softness in capital expenditure from major cloud providers and a broader reassessment of AI infrastructure spending timelines. The decline follows a period of strong momentum through Q3 2024, when MRVL’s shares rose over 40% year-to-date. However, the stock has now retraced nearly 22% from its 52-week high of $138.60, closing at $107.85 on December 10, 2025. Cramer pointed to margin compression in the company’s networking segment as a key concern, with revenue growth slowing to 5.2% year-over-year in the last quarter, down from 12.7% in Q2. He cautioned that while Marvell continues to hold a leading position in storage and data center chips, particularly with its 5nm-based OCTEON processors, the market is increasingly pricing in a near-term slowdown in AI-driven demand. Cramer also highlighted that institutional investors have trimmed exposure, with short interest rising to 4.8% of float, up from 3.1% in October. The broader semiconductor sector has been under pressure, with the SOX index down 6.1% over the past month. Analysts at major firms have revised guidance for several chip suppliers, and Cramer warned that any further delay in data center capex could trigger additional downside for MRVL and peers like Broadcom (AVGO) and Cisco (CSCO).