AI Market Fever Breaks as Marvell Deal Stumbles

Marvell Technology and Lumentum both saw their share prices plummet by more than 15% following the announcement. The market’s reaction highlights a growing skepticism toward the massive capital outlays required to fuel AI infrastructure. This cooling sentiment is rippling across the sector, with CoreWeave shares tumbling to 52-week lows as traders scrutinize the cloud firm’s mounting debt burden from data-center expansion.

Oracle faced a similar investor backlash after unveiling plans to raise $20 billion through debt and equity sales to fund its own AI ambitions. Meanwhile, OpenAI is struggling to meet its fundraising goals, having secured less than half of the $30 billion it initially targeted. The inability to hit such high-profile benchmarks suggests that the era of easy capital for AI ventures is rapidly shifting toward a more cautious, valuation-conscious reality.