Benzinga·2025-11-06 07:05Core Viewpoint - SoftBank Group Corp. is exploring a potential takeover of U.S. chipmaker Marvell Technology Inc. to combine it with Arm Holdings, aiming to strengthen its position in the hardware sector amid the AI boom [1][2]. Group 1: SoftBank's Strategic Moves - CEO Masayoshi Son has been considering Marvell as a target for years to enhance SoftBank's hardware investments that can leverage the AI market [2]. - SoftBank has made attempts to negotiate with Marvell but failed to reach an agreement on terms [2]. - The company is actively seeking to bolster its AI initiatives through various investments and acquisitions, including a significant stake in OpenAI and the recent acquisition of ABB's robotics division for $5.4 billion [3]. Group 2: Marvell's Market Position - Marvell's shares have declined approximately 18% this year, resulting in a market capitalization of about $80 billion, contrasting with the performance of peers like Nvidia, Broadcom, and AMD, which have seen significant gains [6]. - The decline in Marvell's stock was attributed to a disappointing revenue forecast, marking its worst stock decline in over two decades [6]. Group 3: Industry Context - A potential acquisition of Marvell would represent the largest deal in the semiconductor industry, surpassing AMD's acquisition of Xilinx valued at around $50 billion in 2022 [5]. - The tech sector is currently experiencing valuation concerns amid fears of an "AI bubble," leading to sell-offs in major indexes [8].