Marvell Stock Is Bouncing Back From a Near 9% Drop. Its COO Says It Has “All the Demand and the Supply” to Hit $20 Billion in Revenue Next Year

Marvell Technology secured a $3 billion revolving credit facility with a 5-year term, replaceing a prior $1.5 billion agreement. The facility, effective October 22, 2026, is for working capital and general corporate purposes, with options to increase commitments by $2 billion and extend maturity by one year. No loans were outstanding at the agreement's inception, according to the company's SEC filing.

Bank of America forecasts cloud spending to reach $1 trillion by 2026, up from $510 billion in 2025. The bank identifies six semiconductor companies, including Nvidia and Intel, as potential beneficiaries due to AI infrastructure demand.

Chip stocks lost $200 billion on October 22 after Lam Research warned of supply chain constraints, despite NVIDIA's optimistic AI demand outlook. Lam Research's stock fell 11.76%, and other semiconductor stocks also declined. The Philadelphia Semiconductor Index dropped 6.72%. Meta's free cash flow fell to $784 million, and Alphabet reported its first cash-flow-negative quarter.

Marvell (MRVL), AMD (AMD), and Intel (INTC) stocks fell 8%, 8%, and 7% respectively due to supply warnings from Lam Research (LRCX). The iShares Semiconductor ETF (SOXX) dropped 6%. Lam's CFO cited near-term supply chain constraints, while CEO Tim Archer expects bottlenecks to persist into 2027. Investors are concerned about the impact on chip sales and outlooks.

Wall Street set to open lower on Thursday due to AI-related concerns, with Tesla, Meta, and other tech stocks declining. Tesla fell 3.5% after cutting its capital expenditure forecast, while Meta slipped 2.4% due to AI expansion costs. SpaceX and Super Micro also dropped despite strong earnings. Oil prices rebounded, adding to market jitters. S&P 500 earnings growth forecast raised to 32.3%.

U.S. stocks closed mixed on Tuesday, with the Dow Jones rising 529.85 points, boosted by 3M's 5.82% gain after strong Q3 results and a deal with Amazon. 3M reported $6.6B in sales and raised its full-year EPS guidance. GM fell 6.84% despite beating expectations, citing narrowed full-year EBIT guidance. Health care and small caps outperformed, while tech stocks were mixed. SpaceX reported strong Q3 results, beating expectations.