Marvell Technology Acquires Celestial AI for $3.25 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 02 2025
0mins
Source: Newsfilter
- Acquisition Deal: Marvell Technology announced its acquisition of semiconductor startup Celestial AI for $3.25 billion, comprising $1 billion in cash and 27.2 million shares of Marvell common stock, aimed at upgrading its networking products to counter competition from Broadcom and Nvidia.
- Market Reaction: Marvell's shares fell 6% in after-hours trading, reflecting market concerns regarding the acquisition, which may impact short-term shareholder confidence and investor sentiment.
- Industry Context: The generative AI boom has accelerated chipmakers' development processes as they rush to design faster and more energy-efficient equipment for advanced data centers, intensifying competition within the industry.
- Strategic Implications: This acquisition not only strengthens Marvell's position in a highly competitive market but also has the potential to enhance its product portfolio by integrating Celestial AI's technology, thereby capturing a larger market share in the future.
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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: 82.930
Low
85.00
Averages
120.12
High
156.00
Current: 82.930
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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