Marvell Technology Inc. experienced its worst stock drop in over two decades following a revenue forecast that fell short of the highest estimates, disappointing investors who anticipated greater benefits from the AI boom. The chipmaker projected sales of approximately $1.88 billion for the fiscal first quarter, ending in April, which, while aligning with the average analyst estimate, did not meet some projections as high as $2 billion. Marvell shares plummeted 20% to close at $72.28 in New York trading, marking their largest single-day decline since September 27, 2001, and leaving the stock down 35% for the year. Marvell, viewed as a significant beneficiary of the AI computing expansion, had previously exceeded expectations with better-than-expected results, driving its shares to a record high. The company, based in Santa Clara, California, offers chip design services to major tech customers, including Amazon.com Inc., aiding in the development of their data center semiconductors. Concerns over AI-related companies have intensified this year as investors worry about a potential slowdown in customer spending. The release of a relatively inexpensive AI model by Chinese startup DeepSeek further fueled these concerns, suggesting that the industry might not require as much costly equipment. Analysts noted that investors were already cautious about AI-related stocks, and Marvell’s report likely exacerbated these concerns. Broadcom Inc., another chipmaker linked to the AI surge, also saw its stock decline following Marvell’s results. Marvell anticipates earnings between 56 cents and 66 cents per share for the first quarter, excluding certain items, compared to analysts’ projections of 60 cents. In the fourth quarter, earnings grew to 60 cents per share, exceeding the estimated 59 cents. Revenue increased by 27% to $1.82 billion, surpassing the $1.8 billion projection.