Marvell Technology's Shellacking Continues

But Marvell's issues appear to be company-specific, rather than an indication of a broader market trend. Marvell's comments "are incongruent with recently released SIA (Semiconductor Industry Association) data and continuing data points out of Asia, indicating that PC unit shipments are returning to more seasonal trends," wrote Glavin, who has a hold rating on Marvell shares, and whose firm makes a market in Marvell shares.

On Monday, the SIA released its report on August chip sales , which pointed to strength in DRAM memory-chip shipments as evidence of continuing strength in demand for PCs.

Even Marvell bulls acknowledged that the magnitude of the revenue miss blindsided investors.

But CIBC World Markets analyst Allan Mishan, who rates Marvell a sector outperformer, interpreted the preannouncement as a "game-changing" event for Marvell.

"With storage share gains now in the past, Marvell's growth must now come from new areas," Mishan wrote in a note to investors. He said that recent internal investments in wide-area network and voice-over IP chips, as well as acquisitions such as Marvell's $600 million purchase of Intel's(INTC Quote) cell-phone processors, offer numerous opportunities for future growth.

"Though our estimates and PT are coming down, we remain bullish longer term as these investments turn into renewed profitability growth," wrote Mishan, whose company makes a market in Marvell shares.