What Happened?
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. Companies with substantial business ties to Europe likely had some relief as the delay reduced near-term cost pressures and preserved cross-border demand.
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:
- Analog Semiconductors company Microchip Technology (NASDAQ: MCHP) jumped 5.3%. Is now the time to buy Microchip Technology? Access our full analysis report here, it’s free.
- Semiconductor Manufacturing company Marvell Technology (NASDAQ: MRVL) jumped 7.8%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
- Analog Semiconductors company onsemi (NASDAQ: ON) jumped 6.1%. Is now the time to buy onsemi? Access our full analysis report here, it’s free.
- Data Analytics company Amplitude (NASDAQ: AMPL) jumped 5.4%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.
- Footwear company Genesco (NYSE: GCO) jumped 5.4%. Is now the time to buy Genesco? 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 biggest move we wrote about over the last year was 6 months ago when the stock gained 22.6% on the news that the company reported strong third-quarter 2024 results that exceeded Wall Street's sales and earnings expectations.
Sales grew by 19% sequentially amid unwavering AI demand, particularly in data center end markets. In addition, Marvell expected to significantly exceed the guide of $1.5B for AI revenue for the year and was optimistic about achieving its $2.5 billion target for FY26. Looking ahead, its full-year revenue and EPS guidance also exceeded consensus estimates.
Zooming out, we think this was a good quarter with some key areas of upside. Additionally, CEO Matt Murphy addressed speculation about a potential move to Intel, firmly stating he was "All In" on Marvel. This dispelled any uncertainty that could stem from his potential exit, at least in the short term.
Marvell Technology is down 42.7% since the beginning of the year, and at $65.03 per share, it is trading 48.4% 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 $2,118.
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