Chipmaker Marvell Technology said on Tuesday it will buy semiconductor startup Celestial AI in a cash-and-stock deal worth $3.25 billion, as it looks to upgrade its networking products amid intensifyi... ...

Core Insights - Marvell Technology is acquiring semiconductor startup Celestial AI for $3.25 billion, which is expected to enhance its capabilities in photonics technology and contribute to future revenue growth [1][5][6] Company Overview - Marvell anticipates total revenue of approximately $10 billion for the next fiscal year, with a projected 25% increase in data center revenue [3] - The company expects a 20% growth in its custom chip business revenue next year [4] Industry Context - The generative AI boom is accelerating chipmakers' development processes, leading to increased demand for custom chips tailored for advanced data centers [2] - Marvell and competitors like Broadcom are focusing on designing chips for cloud-computing companies, which has become a significant business segment [2] Acquisition Details - The acquisition of Celestial AI will provide Marvell access to photonics technology, which utilizes light for connections between AI chips and memory chips, positioning it against competitors like Broadcom and Nvidia [5] - The deal includes $1 billion in cash and 27.2 million shares of Marvell common stock valued at $2.25 billion [6] Future Projections - Marvell expects to see meaningful revenue contributions from Celestial AI starting in the second half of fiscal 2028, with an annualized run rate of $500 million by Q4 of fiscal 2028, potentially doubling to $1 billion by Q4 of fiscal 2029 [7] - The acquisition is projected to close in Q1 of calendar year 2026 [7] Strategic Partnerships - In relation to the Celestial acquisition, Marvell has issued a warrant to Amazon, allowing Amazon to purchase Marvell shares based on its acquisition of photonic fabric products until the end of 2030 [8]

Core Insights - Marvell Technology, Inc. has announced a definitive agreement to acquire Celestial AI, which specializes in a disruptive Photonic Fabric technology platform designed for scalable optical interconnects [1] - This acquisition is seen as a transformational milestone that will enhance Marvell's connectivity strategy, particularly for next-generation AI and cloud data centers [1] Company Summary - Marvell Technology is recognized as a leader in data infrastructure semiconductor solutions [1] - The acquisition of Celestial AI aligns with Marvell's strategic focus on advancing its capabilities in AI and cloud data center connectivity [1] Industry Summary - The move reflects a growing trend in the semiconductor industry towards integrating advanced technologies that support AI and cloud infrastructure [1] - Photonic technology is becoming increasingly important for improving data transfer speeds and efficiency in data centers [1]

SANTA CLARA, Calif.--(BUSINESS WIRE)--Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, today reported financial results for the third quarter of fiscal year 2026. Net revenue for the third quarter of fiscal 2026 was $2.075 billion, $15.0 million above the mid-point of the Company's guidance provided on August 28, 2025. On August 14, 2025, the Company completed the sale of its automotive ethernet business to Infineon Technologies AG for $2.5 billi. ...

Core Viewpoint - Marvell Technology's stock price increased by 2% following rumors of a potential acquisition of AI startup Celestial AI [1] Company Summary - Marvell Technology (MRVL) is reportedly preparing to acquire Celestial AI, an AI startup, which has positively impacted its stock performance [1]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - Marll is set to report its third-quarter earnings, with expectations of strong performance driven by AI momentum and growth in revenue and earnings per share (EPS) [1][3][4] Earnings Expectations - EPS is anticipated to be 75 cents, an increase from 67 cents in the previous quarter and a 43% rise year-over-year [4] - Revenue is expected to reach $2.06 billion, reflecting approximately 36% year-over-year growth and an increase from $2.01 billion last quarter [5] AI and Data Center Focus - The revenue breakdown will be crucial, particularly the contribution from AI and data center products compared to legacy chips [5][9] - Strong demand for custom AI silicon and data center interconnect solutions was a significant factor in the previous quarter's growth [6] Market Sentiment - Analysts are optimistic about Marll's potential to solidify its leadership in AI infrastructure if it meets or exceeds expectations [4][9] - Despite a year-to-date decline of nearly 16%, the stock has shown bullish momentum, rising almost 11% in the week leading up to the earnings report [9] Competitive Landscape - Analysts have flagged potential risks related to valuation, competition, and capital expenditures, which could impact margins and pricing power [11][12][13] - The increasing competition in the AI infrastructure space may lead to margin pressure, which is a concern for investors [13]

Group 1 - The core viewpoint of the article highlights a significant increase in semiconductor stocks in the US market, with the Philadelphia Semiconductor Index rising by 2.64% [1] - Intel (INTC.US) experienced a notable increase of over 4% [1] - Nvidia (NVDA.US) saw an increase of nearly 3% [1] - Other companies such as TSMC (TSM.US), Marvell Technology (MRVL.US), and AMD (AMD.US) also reported gains of over 2% [1]

Core Viewpoint - The company Marll is identified as an underperformer in the semiconductor sector, lagging behind peers like Qualcomm, Nvidia, AMD, Broadcom, and Micron, with a decline of over 15% this year despite a recent price increase [2][9]. Technical Analysis - The chart analysis indicates a broad upward sloping channel pattern, with key levels to watch being a recent low around 75 and a high near 98 [3][4]. - The moving averages show a clustering, indicating a lack of strong trend directionality, although there is a slight bounce observed [4]. - A breakout above the 50 midline and the downward sloping trend line is noted, with bulls looking for new highs and an RSI breakout above 70 for confirmation [5]. Volume and Expected Moves - The volume profile indicates a point of control near 75, which aligns with a recent low, while volume thins out above 90 and picks up again at 110 [6][7]. - The expected move for the upcoming expiration is approximately 10.8%, with downside support around 83 and upside resistance near 103 [7][8]. Options Strategy - A conservative options strategy is proposed, involving selling a 90 strike put and buying an 85 strike put to create a short $5 wide neutral to bullish put vertical, aiming for a credit of about $180 with a risk of $320 [10][12]. - The probability of the short 90 strike finishing out of the money at expiration is estimated at 55%, providing a cushion of over 5% to the downside [13][14].

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Buzzing AI Stocks on Wall Street. On December 1, Morgan Stanley reiterated the stock as “Equal Weight” and raised its price target on the stock ahead of earnings on Tuesday to $86 per share from $76. "We expect strength in optical to continue, and are hopeful that the expectations shortfalls on Trainium are behind us." On the same day, shares of the stock rose after the company announced an expanded collaboration with Microsoft to extend cloud securit ...