Marvell Technology shares climbed 8.18% to close at $80.28 on Friday, with a final after-hours trade at $81.51, as semiconductor stocks staged a significant rebound. The rally followed renewed confidence in artificial intelligence infrastructure spending after major technology firms signaled increased capital expenditures.
AI Spending Fuels Sector-Wide Gains
The Philadelphia Semiconductor Index advanced 5.7% as investors returned to chipmakers, betting that continued AI investment will drive hardware demand. "There's real demand for AI products," noted Ross Mayfield, investment strategy analyst at Baird. The move comes as Amazon projects capital expenditures to rise more than 50% this year, echoing similar commitments from Alphabet.
Other semiconductor leaders participated in the advance, with Nvidia gaining 7.8%, AMD rising 8.3%, and Broadcom increasing 7.1%. The rally has reignited debate about whether AI spending continues to benefit hardware stocks or begins to create valuation pressures.
Registration Creates Potential Supply Overhang
Late Friday, Marvell filed a prospectus supplement registering 24,222,758 shares for potential resale by "selling securityholders." These shares were originally issued to complete the company's acquisition of Celestial AI, which closed on February 2. According to the filing, Marvell will not receive any proceeds from these potential sales.
The registration creates a dual narrative for investors: while fundamental demand appears robust, increased share availability could pressure the stock if holders decide to sell. The company cited a Nasdaq closing price of $74.21 from February 5 in its filing.
Market participants now face competing factors as trading resumes Monday. The immediate question is whether Friday's sector momentum will persist or if attention shifts to the potential dilution from the share registration. The Semiconductor Industry Association projects global chip sales will reach $1 trillion in 2026, up from $791.7 billion in 2025, supporting long-term optimism.
Next week's economic calendar adds another layer, with U.S. January CPI data scheduled for release on February 13. This inflation reading could influence interest rate expectations and valuations for growth-oriented technology stocks that rely on future earnings projections.
