Marvell and Western Digital Just Had Their Worst Week Since 2001
Both chipmakers raised guidance, yet investors dumped them like a crisis was underway. One election, one record-setting selloff, and one looming merger now separate a sturdier bet from a riskier one.
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Marvell Technology (NASDAQ:MRVL | MRVL Price Prediction) and Western Digital (NASDAQ:WDC) sell different hardware into the same AI data centers. Each lost about 28% in the week ended November 6, 2026.
It was the worst week for both. On a weekly closing-price basis, neither had fallen so much since the week ended September 21, 2001, when markets reopened after the 9/11 attacks. Both companies raised guidance in their latest earnings reports. What remains uncertain is whether the selloff changed AI demand or only the price investors will pay for it.
Both Stocks Held Up Better in 2008 and the Covid Crash
Western Digital’s worst weeks in October 2008 and March 2020 were declines of 23.7% and 25.8%. Marvell’s were 17.7% and 13.7%, so this week stands well outside either stock’s crisis history.
Marvell closed Friday at $141.14, down 28.14% from $196.40, even after a 5.68% gain on Friday. Western Digital slipped 1.51% Friday to $263.60, down 28.00% from $366.11, and its market value fell below $100 billion.
Most of the damage came from the election results.
On November 5, the PHLX Semiconductor Index fell 12.25%, its worst day since March 2020. Marvell dropped 16.43% that day, and Western Digital lost 17.35%.
Democrats won both chambers of Congress after candidates in both parties ran against AI data centers, and LPL Financial strategist Adam Turnquist called the week an overreaction.
Storage Fell as a Group While Marvell Added Merger Risk
Seagate Technology (NASDAQ:STX) lost 28.49%, its worst week since January 2009. SanDisk (NASDAQ:SNDK) fell 27.48%, its seventh straight weekly loss, which tells me investors sold storage as a category.
Marvell also faced deal risk. On November 2, it agreed to buy Lumentum (NASDAQ:LITE). The all-stock deal had an implied enterprise value of $115 billion. Marvell holders will own about 67% of the combined company, and the stock fell 12.72% that day.
The deal is expected to close in the first half of calendar 2028, which leaves a long period of execution risk. Marvell did narrow its third-quarter revenue range to plus or minus 2%.
Why Western Digital Looks Sturdier After the Selloff
Western Digital looks like the sturdier of the two companies after the selloff. The stock sits 64.7% below its June 18 record close, compared with 55.4% for Marvell. That leaves Western Digital at a deeper discount with a simpler business.
Management guided fiscal second-quarter revenue to about $5.1 billion with gross margin of 60% to 61%.
It also cited “good visibility up to 2030, 2031” across its top seven customers. The company raised the dividend 17% and ended the quarter with net cash.
Marvell’s results on December 1 could confirm that its custom silicon business is ramping. However, dilution from the Lumentum deal adds a risk Western Digital doesn’t carry.
That case would weaken if anti-data-center policy becomes law or hyperscalers cut capital spending. October CPI, due November 10, is the next test for the whole group.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
