Marvell Shares Drop After Google Deal, Dragging Down AI Optics Stocks COHR and LITE
On August 28, Marvell Technology Group (MRVL) shares fell after investors expressed concerns that its large-scale deal with Google would take too long to impact financial results. The decline in MRVL's stock triggered a sympathy selloff for Coherent Corp. (COHR) and Lumentum Holdings Inc. (LITE), both key players in the AI optics market. Despite Marvell’s strong data-center revenue growth—up 46% year-over-year with expectations of further acceleration—investors reacted negatively to delays in custom-chip revenue from Google, not a decline in optical demand for hyperscalers like Coherent and Lumentum. Both COHR and LITE had reported robust financials recently but were caught up in the broader AI optics sell-off. The selloff appears more reflective of market sentiment around AI trade contagion than an actual deterioration in long-term demand for high-speed optical components used in AI infrastructure. Analysts suggest that while Coherent and Lumentum remain well-positioned, investor expectations have become increasingly sensitive to short-term fluctuations.
Tickers: $COHR $GOOG $LITE $MRVL
Topics: AI optics Coherent data center demand Google deal impact Lumentum Marvell