Marvell Technology's $3.25 Billion Acquisition of Celestial AI Faces Regulatory Hurdles
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Yahoo Finance
- Acquisition Overview: Marvell plans to acquire artificial intelligence semiconductor startup Celestial AI for approximately $3.25 billion, comprising $1 billion in cash and 27.2 million shares valued at about $2.25 billion, indicating a strategic move into the AI sector.
- Regulatory Challenges: The U.S. Federal Trade Commission has issued an early termination notice, indicating that the transaction is under regulatory scrutiny, which could impact Marvell's acquisition timeline and increase uncertainty surrounding the deal.
- Performance-Linked Terms: Under the deal, Celestial AI shareholders could receive an additional 27.2 million shares if cumulative revenue reaches $500 million by fiscal year 2029, with larger payouts if revenue exceeds $2 billion, reflecting Marvell's confidence in future revenue growth.
- Timeline for Closure: The acquisition is expected to close in the first quarter of 2026, contingent upon obtaining remaining regulatory approvals and customary closing conditions, highlighting Marvell's long-term strategic planning for expansion in the AI market.
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: 81.770
Low
85.00
Averages
120.12
High
156.00
Current: 81.770
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.
