Core Viewpoint - Marvell Technology announced the acquisition of semiconductor startup Celestial AI for $3.25 billion, expressing optimism for the next fiscal year's performance [1][10]. Financial Performance - Following the quarterly earnings report, Marvell's stock rose nearly 10% in pre-market trading [2][11]. - The company expects total revenue of approximately $10 billion for the next fiscal year, with a 25% growth in data center business revenue [2][11]. - Marvell's revenue for the third quarter reached $2.07 billion, a year-over-year increase of 36.8%, aligning with analyst expectations [8][17]. Acquisition Details - The acquisition will provide Marvell with photonics technology, which uses light instead of electrical signals to connect AI chips and storage chips [3][12]. - The deal includes $1 billion in cash and 27.2 million shares of Marvell common stock, valued at $2.25 billion [4][13]. - Celestial AI is expected to contribute significant revenue starting in the second half of fiscal year 2028, with projected annualized revenue of $500 million in Q4 2028 and $1 billion in Q4 2029 [4][13]. Market Position and Strategy - Marvell is positioned to become a leader in the photonics field, with large cloud companies expected to deploy photonics technology for large-scale applications by 2027 or 2028 [4][13]. - The company is collaborating with Amazon and Microsoft to develop proprietary AI chips [3][12]. Related Agreements - Marvell issued a stock warrant to Amazon, allowing the company to purchase up to $90 million worth of Marvell stock based on its procurement of photonic fabric products by the end of 2030 [6][15]. - The exercise price for the stock warrant is approximately $87 per share [7][16]. Future Outlook - The acquisition is expected to close in the first quarter of the 2026 calendar year [5][14].