Marvell Technology shares fell approximately 4.6% after Broadcom CEO Hock Tan warned that capital shortages could become the next major bottleneck for AI chip development and slow investment.
The warning raised concerns about Marvell’s exposure to a small number of large cloud customers. The company designs custom AI chips for these clients under multi-year contracts, leaving it vulnerable if they reduce or delay AI spending.
The market reaction reflected broader concerns about whether major cloud providers can sustain their massive AI-related capital expenditures. Marvell’s concentrated customer base makes a slowdown by key partners a significant risk. Those concerns overshadowed recent positive product announcements and strong long-term revenue targets from the company.