Marvell Technology's stock plunged 5.04% during Monday's intraday trading session, reflecting a broad downturn in semiconductor shares.

The decline was part of a sector-wide sell-off as investors engaged in profit-taking following recent rallies, particularly after SK Hynix's high-profile Nasdaq debut on Friday. Sentiment was further dented by fresh geopolitical tensions between the U.S. and Iran, which raised oil prices and reduced overall risk appetite in the market.

Analysts note that the sell-off reflects growing investor concerns about high valuations in the AI and semiconductor sector and questions about the longevity of the massive capital expenditure boom from Big Tech companies. Specific to Marvell, its forward price-to-earnings ratio remains above its longer-term average, indicating that earnings expectations may not be keeping pace with its stock price.