What Happened?

A number of stocks fell in the afternoon session after hot April CPI sent Treasury yields higher, eliminating 2026 rate-cut hopes, a direct headwind for high-multiple growth stocks. 

Semiconductor companies sell into long-cycle hardware demand, but their stocks behave like growth equities, valued on future earnings. The discount rate investors apply to those future earnings is set by Treasury yields. When yields rise, as they did during the day on the hot CPI print, the present value of future earnings falls mechanically, compressing the price-to-earnings multiple investors are willing to pay.

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 MACOM (NASDAQ: MTSI) fell 4.5%. Is now the time to buy MACOM? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Marvell Technology (NASDAQ: MRVL) fell 6%. Is now the time to buy Marvell Technology? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Applied Materials (NASDAQ: AMAT) fell 4.7%. Is now the time to buy Applied Materials? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company KLA Corporation (NASDAQ: KLAC) fell 4.5%. Is now the time to buy KLA Corporation? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Lam Research (NASDAQ: LRCX) fell 4.1%. Is now the time to buy Lam Research? 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 36 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 previous big move we wrote about was 15 days ago when the stock dropped 4% on the news that the company canceled all purchase orders with POET Technologies that were originally placed by Celestial AI, a firm Marvell recently acquired. 

Marvell provided written notice for the cancellation, citing a breach of confidentiality by POET Technologies as the reason. The company alleged that POET had disclosed order and shipping information, which went against their agreement. This move created uncertainty about the business relationship and potential disruptions in future projects within the semiconductor sector, leading to a negative reaction from investors.

Marvell Technology is up 80.3% since the beginning of the year, and at $161.14 per share, it is trading close to its 52-week high of $172.15 from May 2026. Investors who bought $1,000 worth of Marvell Technology’s shares 5 years ago would now be looking at an investment worth $3,882.

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