Marvell (MRVL) fell nearly 37% over the past month and 29.4% over the past week after announcing an all-stock deal to buy Lumentum (LITE), a steeper drop than AI chip peers, whose monthly declines ranged from 6.48% to 23.66%. Investors disliked paying in stock because it dilutes existing holders, and Marvell carries $4.963 billion in long-term debt while still integrating Celestial AI and XConn Technologies. Several of the 47 analysts covering the stock have cut targets since the deal, with the average target at $333.09 against a price of $171.97. Piper Sandler kept its Overweight rating and $400 target, calling the selloff an overreaction and citing second-quarter fiscal 2027 revenue of $2.739 billion, up 36.5%. The article notes most targets were set before the deal, so the average could drift lower.
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