Core Insights - Marvell Technology's data center switching business is rapidly growing, with expectations for revenues to exceed $300 million in fiscal 2026 and $500 million in fiscal 2027 [1][8] - The company anticipates sustained demand for its 12.8T switch platforms and has begun shipping next-generation 51.2T products, with a strong ramp expected in 2026 [2][8] - Marvell is focused on introducing 100T switching products in 2026, which will support high radix configurations and low power consumption [3][8] Product Development and Industry Alignment - Marvell is aligning with industry standards such as UALink and ESUN, with plans to sample 115T and 57T UALink solutions in the second half of fiscal 2027 and begin volume production in fiscal 2028 [4][8] - The company is collaborating with customers on ESUN-based scale-up solutions to ensure comprehensive coverage across both ecosystems [4] Competitive Landscape - Marvell competes with Broadcom and Cisco in the switching market, with Broadcom's PCIe Gen 6 switch integrated into AI rack solutions and Cisco poised to benefit from a multi-year refresh of its switching products [5][6] Financial Performance and Valuation - Marvell's shares have increased by 11.6% over the past six months, compared to a 21.8% increase in the Zacks Electronics - Semiconductors industry [6] - The company trades at a forward price-to-sales ratio of 6.86, which is lower than the industry average of 8.40 [9] - The Zacks Consensus Estimate for Marvell's fiscal 2026 and 2027 earnings indicates year-over-year growth of 80.9% and 26.2%, respectively, with upward revisions in estimates for both fiscal years [11]

Core Insights - Marvell Technology (MRVL) is expanding its AI connectivity portfolio through new product launches and acquisitions, including the acquisition of XConn Technologies to enhance its PCIe and CXL switching solutions [1][10] Acquisition Details - The acquisition of XConn will enhance MRVL's Ultra Accelerator Link (UALink) capabilities and is expected to add approximately $100 million in revenues by fiscal 2028, along with bringing in over 20 new customers [3][10] - MRVL's acquisition of Celestial AI aims to improve its connectivity portfolio with advanced photonic interconnect technology, expected to contribute significantly to revenues in the second half of 2028 and reach $1 billion by the fourth quarter of fiscal 2029 [4][10] Financial Position - As of November 1, 2025, MRVL has cash and cash equivalents of $2.71 billion and long-term debt of $3.97 billion, with plans to fund the acquisitions through a mix of cash, common stock, and earnouts [5] Competitive Landscape - MRVL competes with Broadcom and Astera Labs in the connectivity space, with Broadcom's PCIe Gen 6 switch and retimer being utilized by major hyperscalers and manufacturers [6][7] Stock Performance and Valuation - MRVL shares have increased by 17.1% over the past six months, compared to a 25.2% increase in the Zacks Electronics - Semiconductors industry [8] - The company trades at a forward price-to-sales ratio of 7.26, which is lower than the industry average of 8.59 [12] Earnings Estimates - The Zacks Consensus Estimate for MRVL's fiscal 2026 and 2027 earnings indicates year-over-year growth of 80.9% and 26.2%, respectively, with recent upward revisions in estimates [15]