Marvell Stock Fell 58% From Its Record. History Says What Followed Its Last 4 Drops This Deep.
Two of the chip designer's past rebounds from a crash this deep took over five years. Is this one different?
Marvell Technology's stock experienced a 58% decline from its record high in November, following the company's acquisition of Lumentum Holdings. This drop was not unprecedented, as Marvell had faced similar declines from its record price four other times since 2000. The first crash occurred during the dot-com bust in 2000, when the stock plummeted around 92% before recovering over five years later.
The second significant drop took place during the 2008 financial crisis, with the 58% loss happening before the bottom was reached. The most recent two declines, in late 2021 and early 2025, saw a 62% and 61% drop, respectively, with the stock bouncing back quickly after each dip. Marvell's revenue growth has been accelerating, reaching 37% in the second quarter of 2027, and the company expects continued growth.
Despite the recent price drop, the stock now trades at a lower valuation compared to its 2000 record, with an earnings multiple of just 19 times. The author believes that Marvell's accelerating revenue growth indicates that today's stock may be a better value than it was during its previous crashes, and recommends buying the stock in increments.
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