Marvell Technology shares fell 3% in overnight trading after closing at a record high on Wednesday, signaling profit-taking following a 45% two-day rally sparked by Nvidia CEO Jensen Huang's endorsement at Computex 2026. Huang called Marvell a potential trillion-dollar company and highlighted photonics technology for data center efficiency. Other photonics stocks including Lumentum, Coherent, and Corning also pulled back overnight, with declines ranging from 2.2% to 9%.
Lumentum shares declined 9% on Wednesday and another 3% overnight. Coherent's stock declined 2.2% on Wednesday and then 3.6% in the overnight session, while Corning's shares declined 3.6% overnight.
Stifel and Morningstar Raise MRVL Price Targets
Stifel raised its price target on MRVL to $321 from $230 on Tuesday, citing that Computex served as a platform to capture increased market acceptance of Marvell's positioning within the broader data center and AI ecosystem. The brokerage's target implies a 7% upside from the stock's last closing price.
Morningstar raised its price target on MRVL to $235 from $130. "The market is pricing Marvell as an optics winner, and we agree," the research firm said in an investor note on Tuesday, adding that it viewed the stock as "moderately undervalued at our new valuation."
Morningstar said it models "Marvell to smash its $18 billion data center sales target in calendar 2028, while reaching its $11 billion custom compute target. This upside is entirely from optics, with classic Marvell's DSP chips for scale-out AI networks and its co-packaged optics with Celestial AI in tow."
Currently, 38 of 44 analysts rate the stock 'Buy' or higher, and six rate it 'Hold,' per Koyfin. Their average price target of $233.14 implies a 23% downside for the stock.
Stocktwits Sentiment Remains Extremely Bullish
On Stocktwits, the retail sentiment for MRVL remained 'extremely bullish,' unchanged since last Thursday. "$MRVL easiest dip buy in history .. is it overbought? Yes. Does it matter? No. This is a repricing... stock will be $400+ in no time," said a trader.
"$MRVL So this stock has a healthy green day on a tough day in the market, then it's down by less than 2% 20 minutes into AH on light trading, and they say it's dead. This is laughable," another trader wrote. "I agree it's overbought, but dayum, this is a $250 billion company."
The fact that a single comment led the company to add nearly $72 billion to its market capitalization created some unease among traders, though many believe MRVL would continue higher.
Year-to-date, Marvell shares have soared 255%. The company had a market capitalization of $263.88 billion on Thursday.
FAQ
Why did Marvell stock drop overnight after reaching a record high?
Marvell Technology shares fell 3% in overnight trading after closing at a record high on Wednesday due to profit-taking following a 45% two-day rally sparked by Nvidia CEO Jensen Huang's endorsement at Computex 2026.
What did analysts say about Marvell's price target after Computex 2026?
Stifel raised its price target on MRVL to $321 from $230, and Morningstar raised its target to $235 from $130. Currently, 38 of 44 analysts rate the stock 'Buy' or higher, with an average price target of $233.14.
