Marvell Technology Completes $3.25B Acquisition of Celestial AI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy MRVL?
Source: Newsfilter
Marvell Technology Inc. has seen its stock price decline by 3.00%, hitting a 20-day low amid mixed market conditions, with the Nasdaq-100 down 0.16% and the S&P 500 up 0.09%.
The company has finalized its $3.25 billion acquisition of Celestial AI, which includes approximately $1 billion in cash and around 27 million shares. This strategic move is expected to enhance Marvell's capabilities in the AI sector, particularly through the integration of Celestial AI's Photonic Fabric technology, which will improve optical connectivity solutions for AI and cloud data centers. Although the acquisition will increase annual non-GAAP operating expenses by about $50 million, it is projected to significantly boost revenue starting in fiscal 2028, with expectations of reaching a $1 billion annualized run rate by fiscal 2029.
This acquisition positions Marvell favorably in the rapidly growing AI infrastructure market, which is projected to reach nearly $1.4 trillion by 2026. Despite the current stock decline, the long-term growth potential from this acquisition and the anticipated revenue contributions could enhance Marvell's competitive edge in the industry.
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Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRVL is 120.12 USD with a low forecast of 85.00 USD and a high forecast of 156.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
22 Buy
8 Hold
0 Sell
Moderate Buy
Current: 74.210
Low
85.00
Averages
120.12
High
156.00
Current: 74.210
Low
85.00
Averages
120.12
High
156.00
About MRVL
Marvell Technology, Inc., together with its subsidiaries, is a supplier of data infrastructure semiconductor solutions, spanning the data center core to network edge. The Company is engaged in the design, development, and sale of integrated circuits. Its product solutions serve various end markets: data center, enterprise networking, carrier infrastructure, consumer, and industrial. Its product offerings include CXL, Data Processing Units, Security Solutions, Coherent DSPs, Coherent-lite DSPs, Data Center Switches, DCI Optical Modules, Enterprise Switches, Ethernet Controllers, Ethernet PHYs, PCIe Retimers, Linear Drivers, PAM DSPs, Transimpedance Amplifiers, Fiber Channel, HDD, Storage Accelerators, and SSD Controllers. The Company develops semiconductor solutions tailored to individual customer specifications that deliver system-level differentiation for artificial intelligence, data center, compute, networking, carrier, storage, aerospace, and defense applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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