Marvell's Acquisition of Celestial AI Completed Amid Analyst Caution
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 13 2025
0mins
Should l Buy MRVL?
Source: Globenewswire
Marvell Technology Inc's stock fell 3.12% to $75.12, hitting a 20-day low amid broader market declines with the Nasdaq-100 down 1.69% and the S&P 500 down 1.45%.
The company has completed its acquisition of Celestial AI for approximately $3.25 billion, which is expected to enhance its optical connectivity capabilities in data centers. However, analysts have expressed caution, lowering price targets and adjusting earnings forecasts due to anticipated delays in revenue contributions from the acquisition until the second half of fiscal 2028. This has led to a bearish sentiment surrounding Marvell's short-term performance, despite the long-term strategic value of the acquisition.
The integration of Celestial AI's technology is expected to bolster Marvell's competitive position in the AI and cloud data center markets. However, the immediate financial impact includes increased operating expenses and reduced cash flow, which may pressure the company's profitability in the near term.
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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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