Marvell Stock Crashes 13% as PLTR Slides Despite 96% Revenue Growth, Deepening AI Stock Selloff

Key takeaways Marvell plunges after announcing $115 billion acquisition Palantir shares slide despite 96% revenue growth Investors increasingly question expensive artificial intelligence valuations Marvell stock plunged nearly 13% on November 2, while Palantir (PLTR) shares fell approximately 8% in Tuesday's premarket trading, extending a technology-sector selloff despite major developments across the artificial intelligence industry. Marvell closed Monday down 12. 7% after announcing a $115 billion acquisition of Lumentum, while Palantir faced selling pressure despite reporting third-quarter revenue growth of 96%.

The declines extend October's AI selloff, highlighting growing investor concerns about expensive acquisitions, slowing business momentum and elevated technology valuations. Marvell Stock Crashes 13% After $115 Billion Lumentum Deal Marvell confirmed on November 2 that it would acquire optical networking specialist Lumentum in an all-stock transaction valued at approximately $115 billion, including debt. According to the official announcement, Lumentum shareholders will receive 4.

5 Marvell shares for each existing share, giving them approximately 33% ownership of the combined company. The agreement substantially exceeds the $83 billion valuation discussed during earlier acquisition negotiations. Marvell expects the combined business to generate more than $21 billion in annual revenue and achieve over $1 billion in annual cost synergies.

However, investors reacted negatively to the transaction's size and potential dilution. Marvell shares declined 12. 7%, while Lumentum dropped 18.

6%, reflecting uncertainty surrounding the acquisition's financial benefits and execution risks. The transaction is expected to close during the first half of 2028, subject to shareholder and regulatory approvals. PLTR Stock Slides Despite Palantir's 96% Revenue Growth Palantir reported third-quarter revenue of $2.

313 billion, representing 96% annual growth and exceeding Wall Street's $2. 18 billion expectation. According to its earnings release, adjusted earnings reached $0.

44 per share, while US commercial revenue surged 148% to $984 million. Despite the strong results, PLTR stock declined approximately 8% in Tuesday's premarket session. The reaction followed concerns about slowing contract growth, with total contract value increasing just 6% annually compared with 49% during the previous quarter.

Palantir raised its full-year revenue forecast to approximately $8. 53 billion, but investors remain concerned about whether future growth can justify its premium valuation. AI Stock Selloff Exposes Growing Valuation Risks The simultaneous pressure on Marvell and Palantir illustrates different challenges confronting AI-focused businesses.

Marvell faces uncertainty over acquisition costs and integration, while Palantir must demonstrate that exceptional revenue growth can remain sustainable. These concerns follow Intel's historic collapse and growing scrutiny of Amazon's AI spending. The Nasdaq valuation decline suggests investors are increasingly prioritizing execution, cash generation and realistic growth expectations.