Marvell Technology shares tumbled 5.06% in pre-market trading on Tuesday, caught in a broader rout of artificial intelligence-linked semiconductor stocks. The decline came as investors grew increasingly anxious about rising costs and mounting competition from China in the chip sector.

The selling pressure was widespread across the semiconductor industry, with memory-card maker Sandisk dropping 5.5%, Intel falling 4%, and AMD declining 4.10% ahead of the opening bell. The Philadelphia Semiconductor Index has now retreated nearly 20% from its all-time high, approaching bear market territory. Dutch chip-tool maker ASML also slid 4.4%, extending Monday’s 5.8% slump after reports emerged that a Chinese state-backed company was mass-producing chip-making machines.

Adding to the sector’s woes, momentum trading strategies have suffered their steepest drawdown in four years, with retail-heavy tech stock portfolios falling over 25% from their June highs. As a stock with elevated retail participation, Marvell Technology remains particularly exposed to this systematic de-risking dynamic, with sector-wide selling pressure showing no signs of abating.