Marvell Completes Acquisition of XConn, Expects $100M Revenue in 2028
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy MRVL?
Marvell Technology announced that it has completed its previously announced acquisition of XConn Technologies, a provider of advanced PCIe and CXL switching silicon. Marvell expects initial revenue contributions from XConn to begin in the third quarter of fiscal 2027, ramping to a $50M annualized run rate in the fourth quarter of fiscal 2027. In fiscal 2028, Marvell expects XConn to contribute $100M in revenue. The acquisition is expected to add approximately $25M in annual non-GAAP operating expenses to Marvell's current run rate. The completion of the acquisition reduced Marvell's cash balance by $325M, lowering expected interest income in future fiscal periods, which will result in a decrease in the company's Other Income by approximately $12M on an annual basis. In addition, the company issued equity to complete the acquisition which increased Marvell's diluted weighted-average shares outstanding by approximately 2.7M shares.
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Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to rise
30 Analyst Rating
22 Buy
8 Hold
0 Sell
Moderate Buy
Current: 78.610
Low
85.00
Averages
120.12
High
156.00
Current: 78.610
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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- Accelerated Growth Projections: The overall data center systems market is expected to grow at a 64% year-over-year rate in 2026, while AI systems are projected to achieve a remarkable 100% growth rate, indicating significant market expansion driven by new accelerator deployments.
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- Investment Recommendation: Although Marvell Technology was not included in the current top stock picks by The Motley Fool Stock Advisor, its unique position in AI technology, particularly in relation to partnerships with Nvidia and Intel, warrants attention.
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- Investor Community: Joining The Motley Fool's investor community provides access to the latest top 10 stock recommendations; while Marvell Technology is not among them, its potential market performance continues to attract investor interest.
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- Overdone Sell-off Assessment: Despite the market pressure, the sell-off of certain stocks appears overdone, and analysts believe these stocks remain attractive for inclusion in investment portfolios, particularly Marvell Technology.
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See More
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