We recently compiled a list of the 10 Companies Echo Friday's Market Pessimism. In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against the other stocks.

Ten companies were hit hard on Friday as investors digested disappointing earnings performance and dismal outlook guidance for 2025.

The shares' performance traded in line with Wall Street's major indices, with the Dow Jones losing 0.99 percent, the S&P 500 falling 0.95 percent, and the tech-heavy Nasdaq diving 1.36 percent.

To come up with Friday’s worst performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

An assembly line in a semiconductor factory, with workers at their stations.

Marvell Technology Inc. (NASDAQ:MRVL)

Shares of Marvell Technology Inc. declined by 7.23 percent on Friday to end at $110.62 apiece as investors resorted to profit-taking following a surge in its value on Thursday.

MRVL, a semiconductor company supplying products to Amazon, earned a boost from AMZN’s announcement that it would continue to spend billions of dollars in growing its Amazon Web Services unit, which means more spending on AI chips, network equipment, and data center infrastructure.

Late last year, MRVL and AMZN entered into a five-year agreement under which MRVL would supply AMZN with custom chips and other data center equipment.

MRVL can be partly owed to the success of AMZN’s AWS custom Trainium 2 AI chip, with AMZN announcing plans to compete with giant chipmaker Nvidia Corp. with its own chips and server offerings.

Overall MRVL ranks 9th on our list of Friday's worst performers. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRVL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.