This Semiconductor Stock Is Surging After an AI Deal and Strong Earnings

Group 1 - Marvell Technology reported adjusted earnings of $0.76 per share for Q3 of fiscal 2026, exceeding analyst estimates, with revenue of $2.07 billion in line with expectations [1] - The company experienced strong demand for its data center products, projecting full-year revenue growth of over 40% compared to fiscal 2025, and at least 10% growth in fiscal 2027, with data center revenue expected to surge more than 25% [1] - Marvell announced the acquisition of Celestial AI for $3.25 billion, with an additional $2.25 billion in potential stock awards based on revenue milestones, expected to close in Q1 of next year [1] Group 2 - Following the earnings report and acquisition announcement, Marvell's stock rose nearly 5%, indicating renewed confidence in the AI sector and the company's position within the semiconductor industry [1] - Analysts at Oppenheimer raised their target price for Marvell stock to $150 from $115, reflecting optimism regarding the Celestial AI acquisition [1] - Despite the recent gains, Marvell's stock has declined approximately 12% for 2025 due to earlier concerns about its outlook [1]