Why Marvell Technology Stock Fell Hard in October

Marvell Technology's stock plunged 25.6% in October as investors fled AI stocks amid concerns about excessive tech spending on data center infrastructure. The decline accelerated after Bloomberg reported Marvell's plan to acquire optical component maker Lumentum for $115 billion in an all-stock deal, raising shareholder dilution concerns. Despite strong fiscal guidance announced earlier in the month, broader AI sector skepticism and rising inflation fears dominated market sentiment.