What Happened?
A number of stocks fell in the morning session after the U.S. jobs report for July came in significantly weaker than expected while new widespread import tariffs were announced, sparking fears of a potential economic slowdown. The U.S. economy added only 73,000 jobs, far below estimates, and massive downward revisions to the prior two months painted a much weaker picture of the labor market. This has stoked recession fears, which would directly impact demand for chips used in countless products. Compounding these worries, the White House announced new tariffs, including a 20% levy on imports from Taiwan, a global hub for chip manufacturing. This dual shock of slowing domestic growth and renewed trade friction creates a challenging outlook for the highly cyclical and globally connected semiconductor industry, leading to a broad-based sell-off.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Processors and Graphics Chips company AMD (NASDAQ: AMD) fell 3.2%. Is now the time to buy AMD? Access our full analysis report here, it’s free.
- Processors and Graphics Chips company Broadcom (NASDAQ: AVGO) fell 3.3%. Is now the time to buy Broadcom? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Marvell Technology (NASDAQ: MRVL) fell 7.3%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Memory Semiconductors company Micron (NASDAQ: MU) fell 4%. Is now the time to buy Micron? Access our full analysis report here, it’s free.
- Processors and Graphics Chips company Nvidia (NASDAQ: NVDA) fell 3.6%. Is now the time to buy Nvidia? Access our full analysis report here, it’s free.
Zooming In On Marvell Technology (MRVL)
Marvell Technology’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.3% on the news that it announced a collaboration with South Korean AI semiconductor company Rebellions to develop custom AI infrastructure. The partnership aimed to deliver high-performance, energy-efficient AI systems specifically for sovereign-backed AI projects in the Asia-Pacific and Middle East regions. Under the agreement, Rebellions planned to use Marvell's custom platforms, including advanced packaging and high-speed interconnect technologies, to design specialized AI accelerators. This move was seen as a strategic step for Marvell to tap into the growing market for government-supported AI initiatives, providing end-to-end solutions for large-scale AI inference, which is the process of using a trained AI model to make predictions.
Marvell Technology is down 34.6% since the beginning of the year, and at $74.25 per share, it is trading 41.1% below its 52-week high of $126.06 from January 2025. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $1,987.
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