Marvell Technology stock drops almost 4% after multi-billion Google deal and Nvidia investment

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Marvell Technology slides 3.79% today

Highlights

Marvell Technology signed a multibillion-dollar agreement with Google for custom AI chips and possible equity investments, with potential deal value up to $120 billion through fiscal 2033.
Nvidia invested $2 billion in Marvell this year to expand collaboration in interconnect and photonics, supporting Marvell's strategy in AI infrastructure.
Shares of Marvell trade between $221.01 support and $228.8 resistance, with a 76% probability of an upward move and technical signals mixed on near-term direction.

Upside momentum contrasts with equity deals and strong chip demand

Marvell Technology is scheduled to report its quarterly earnings following the market close on August 27 after posting significant gains, supported by strong demand for its custom AI chips and optical networking offerings. The company expanded its partnership with Google in a multibillion-dollar deal that includes custom chip purchase and possible equity acquisitions, with a total agreement value that could scale up to $120 billion through fiscal 2033 if all conditions are met. Marvell also received a $2 billion investment from Nvidia earlier this year to deepen collaboration in interconnect and photonics. The company has a track record of earnings beats and recently raised revenue guidance for fiscal 2027, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, believes Marvell’s recent drop signals profit-taking and short-term market skepticism, even despite strong AI chip demand and major partnership announcements. He notes the stock is struggling to hold above the 50-day moving average, with oscillators flashing mixed to overbought readings and intraday volatility heightened. Fund flows from Nvidia and Google support the fundamental story, but price action remains under broad selling pressure. Kharitonov cautions that technical and sentiment signals do not validate further upside momentum yet. "The market is clearly hesitant about sustaining recent gains, and investors should be wary of a potential reversal if support at $221.01 fails to hold."

Viktoras Karapetjanc, expert at Traders Union, sees Marvell as fundamentally strong, supported by robust AI chip demand and transformational deals with Google and Nvidia. He highlights the resilience above long-term averages and a positive revenue outlook through fiscal 2027. The bullish structure remains intact despite near-term volatility and profit-taking. Karapetjanc remains confident that Marvell offers further opportunities for growth. "These developments create a foundation for outsized returns, and I expect the stock to break higher in the coming weeks."

Sholanke Dele, market strategist, is cautious about Marvell’s current setup. He points to conflicting momentum signals and rising volatility as warning signs, while the downside gap and pressure post-earnings suggest sentiment may be fragile. Dele stresses the risk of a break below the $221.01 floor, especially if market flows weaken. "Chasing this rally feels risky now, and I’d rather wait for a clear support retest before considering any upside bets."

Mixed momentum signals as buyers counter overbought technical zone

Marvell Technology trades above its 20-day ($210.42) and 200-day ($145.07) moving averages, but remains below the 50-day ($233.85), suggesting short-term pressure after a recent advance and continued support in the broader uptrend. Immediate boundaries are set by resistance at $228.8 and support at $221.01, with the longer-term trend favoring bulls. Momentum gauges show mixed signals: the Moving Average Convergence Divergence (MACD) points to upside potential, while the Average Directional Index (ADX) is neutral, indicating a lack of clear trend strength. The Relative Strength Index (RSI) reads 55.8 with a "Buy" signal, but the Stochastic RSI signals "Strong Sell", and both the Commodity Channel Index (CCI) at 116.06 and the Bull/Bear Power (BBP) at 26.87 flag overbought conditions. Buyers currently dominate intraday momentum, and the Awesome Oscillator (AO) reinforces upward movement. The stock fell $8.99 or 3.79% in the latest session, opening with a downside gap of $8.24 (3.48%) and trading near session highs, with intraday volatility at 3.52%. The mood is pressured after the open, and oscillators send conflicting signals on near-term direction.

Earlier, analysts noted that Marvell and its peers faced selling pressure amid broader tech weakness and uncertainty ahead of key earnings and inflation data. The latest developments add a potentially bullish dimension as partnership announcements and continued support above major moving averages place focus on a possible break above $228.8 as the next level to watch.

Source of Data: MRVL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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