Marvell Technology's stock plummeted 5.07% during Thursday's intraday session, extending a recent decline for the semiconductor company.
The sharp drop is part of a broad-based sell-off in memory and semiconductor stocks, driven primarily by new regulatory measures announced by South Korea's Financial Services Commission. The regulations target single-stock leveraged exchange-traded funds (ETFs) by raising margin requirements and halting new product launches, which analysts say removes a source of speculative funding that had been active in trading memory stocks. As a key component of AI infrastructure, the memory sector had seen substantial gains this year and is highly sensitive to shifts in market sentiment and liquidity.
Additionally, the semiconductor sector continues to face persistent profit-taking pressure and sector-wide weakness, with concentrated selling in AI-related hardware names contributing to the downward momentum for stocks like Marvell Technology.