If you hold Marvell Technology (MRVL) stock, you’ve seen its price fluctuate. The company is posting strong growth, raising its revenue outlook for next year by $1.5 billion in a single quarter. Yet the stock is well off its highs, and it recently dropped even after reporting those results. This isn’t a contradiction; it’s a signal that the market is focused on a new, more complicated question. The central risk for Marvell isn’t that its AI-driven growth will stop. It’s that the very nature of that growth is changing the company’s financial profile, and perhaps not for the better.

The Margin Squeeze Is Here, And It’s By Design

For years, investors valued Marvell for its high-margin products. But…