Nasdaq Win Streak Snaps at Unlucky 13, Pulling Back From Highs

The Nasdaq Composite is down 0.55% Monday, ending a remarkable 13-session rally as profit-taking in megacap technology names outweighed fresh optimism around artificial intelligence chip partnerships.

Leaders and Laggards

Marvell Technology led Nasdaq 100 gainers with a 4.42% surge to $145.86, building on a 159% one-year advance and pushing the stock to fresh record highs. The semiconductor designer was joined by Analog Devices, up 3.45% to $384.26, and Arm Holdings, which added 2.97% to reach $171.68 by midday trading.

On the downside, Intel suffered the steepest decline among the leading 100, falling 3.94% to $65.80, taking a breather after a breakneck rally that has seen a 238% gain over the past year.

Netflix dropped 3.52% to $93.89, while Micron Technology retreated 3.42% to $439.51 after its own extraordinary 558% annual rally. Meta Platforms and Broadcom each shed approximately 2.2%, down at $673.38 and $397.44 respectively, as markets rotated out of crowded positions following the index’s extended run to record territory.

The pullback marks the first down session for the tech-heavy index since early April, with a 13-day winning streak propelling the Nasdaq 100 to new all-time highs on the back of easing Middle East tensions and a temporary ceasefire that sent oil prices lower and boosted risk appetite across growth sectors.

Marvell Leads The Way To Its Own High

Marvell’s outperformance came on reports the company is in active discussions with Alphabet’s Google to co-develop two custom artificial intelligence chips for cloud workloads, according to industry sources. The potential partnership would position Marvell as a direct competitor to Broadcom in the high-margin custom ASIC space, where hyperscale cloud providers are increasingly seeking multiple suppliers to reduce concentration risk and negotiate better terms.

The Google talks build on Nvidia’s $2 billion strategic investment in Marvell announced in late March, which also included a deepened partnership around Nvidia’s NVLink Fusion platform for AI data center connectivity. That deal sent Marvell shares up double digits and reinforced the company’s status as a core beneficiary of surging demand for custom silicon in AI infrastructure.

Marvell’s financial performance has strengthened alongside its strategic positioning, with the company doubling net profit over the past five quarters and achieving a return on equity near 19%. Consensus analyst ratings stand at “Strong Buy” from more than 30 firms, with coverage emphasizing the company’s leverage to AI and cloud capital expenditure cycles extending into fiscal 2026.

The broader semiconductor sector displayed mixed action. Analog Devices benefited from improving sentiment around a bottoming industrial and automotive semiconductor cycle, while maintaining exposure to AI-related power management and analog front-end demand. Arm Holdings continued to attract flows as an essential intellectual property provider for mobile, edge AI, and emerging data center CPU architectures.

Conversely, Broadcom’s decline reflected subtle narrative pressure as the Marvell-Google reports highlighted intensifying competition in custom AI ASICs, a segment where Broadcom has enjoyed dominant market share and premium margins. Though no immediate revenue impact is expected, the prospect of a narrowing competitive moat prompted some profit-taking in the stock after its substantial multi-year advance.

Meta Platforms faced modest pressure following a Bank of America price target reduction to $820 from $885, though the firm maintained its Buy rating. The adjustment was framed as a valuation and near-term risk-reward recalibration rather than a downgrade of Meta’s long-term artificial intelligence advertising and engagement thesis, but it provided an additional catalyst for traders to trim positions after the stock’s 34% one-year gain.

Outlook

The Nasdaq’s pullback from a 13-session winning streak, one of the longest runs in recent years, was widely anticipated by technical analysts who had flagged extended conditions and strong resistance levels. The index’s V-shaped recovery from March lows and consecutive record closes left it vulnerable to profit-taking on any catalyst, with this weekend’s renewed focus on Middle East events providing the trigger.

Semiconductor leadership remains intact despite Monday’s mixed performance, with the AI infrastructure buildout continuing to drive differentiated outcomes. Marvell’s emergence as a credible alternative supplier for custom AI chips represents a meaningful shift in competitive dynamics, potentially pressuring Broadcom’s pricing power while expanding the addressable market for specialized silicon.

The backdrop of record index levels and a finally-broken winning streak introduces tactical caution, even as fundamental support for technology leadership remains broadly intact. Earnings season will test whether current valuations are justified by revenue and margin trajectories, particularly for companies at the forefront of the AI hardware wave.