Marvell Technology (NASDAQ: MRVL) shares fell 37% in July, primarily due to increasing investor skepticism about the return on investment from artificial intelligence (AI) spending, leading to a broad sell-off in AI and semiconductor stocks. Furthermore, Erste Group's downgrade of Marvell's stock rating from "buy" to "hold" exacerbated the decline. Despite no specific negative company-level news, the prevailing market sentiment is that AI companies might cut spending if profits do not materialize in a timely manner, resulting in a cumulative $1 trillion evaporation from semiconductor companies' market capitalization. Currently, Marvell's price-to-earnings (P/E) ratio is approximately 64x, significantly higher than the tech industry average of 34x, indicating that its stock price remains elevated.