The hardest thing about making custom AI chips for large, demanding customers might be the expectations that go with it. Shares of Marvell Technology slid Thursday morning following its quarterly report.

Broadcom (NASDAQ: AVGO) stock is losing ground today. The company's share price was down 5.8% as of 2:30 p.m. ET. Meanwhile, the S&P 500 index was down 2% at the same point in the day's trading, and the Nasdaq Composite index was down 2%.

Marvell Technology tumbled 16% and dragged down rival chipmakers on Thursday, after an in-line revenue forecast gave investors another reason to be jittery about spending on AI infrastructure, as a years-long rally shows signs of cooling.

"While unwelcome, volatility is common in semi stocks and does not always presage a fundamental shift," Bank of America said.

Marvell Technology Inc. shares tumbled the most in more than nine years after the company delivered a revenue forecast that fell short of the highest estimates, disappointing investors who were looking for a bigger payoff from the AI boom.

U.S. stock futures fall sharply as volatility surrounding tariffs policy continues, Marvell Technology shares sink on firm's weak outlook, and analysts are expecting revenue and profit growth from Costco's report after the bell.

Nvidia (NVDA) and other chip stocks fell in early trading Thursday as the artificial intelligence trade faltered. Shares of the AI chipmaker were down more than 2% in recent trading. Advanced Micro Devices (AMD),

AI chip stocks trading lower in sympathy with Marvell's weak guidance. Concerns over US chip subsidies and tariffs impacting semiconductor ecosystem.

On the trade front, President Donald Trump exempted automakers that comply with existing free trade agreement and sources said the negotiations were ongoing. Wall Street's main indexes closed higher over 1% on Wednesday following Trump's announcement.