Marvell Technology shares fell nearly 4% in premarket trading. A broader selloff in high-valuation technology stocks drove the decline.
This slide extends losses following the company's August 27 second-quarter earnings report. Marvell reported record revenue growth fueled by data center demand.
Investors reacted to free cash flow and margins that declined compared to the first quarter. Market concerns regarding weakening AI chip demand contributed to the selling pressure. Traders are taking profits following a significant rally in the stock over the past year.