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Marvell stock pops as Celestial deal boosts AI push

Yahoo Finance•December 03, 2025 at 12:05 PM•Full Content
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Detected Companies & Sentiment

NVIDIA Corporation
"direct competitor in ai push"
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Broadcom Inc.
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Gist

Marvell's stock surged 9% on news of its $3.25B acquisition of Celestial AI, boosting its AI infrastructure ambitions and positioning it as a stronger competitor in the photonic tech race with Broadcom and Nvidia.

LLM Summary

Marvell Technology's shares rose 9% premarket after announcing a $3.25 billion deal to acquire Celestial AI, enhancing its AI and photonic fabric capabilities. The acquisition strengthens Marvell’s position in next-gen data centers, with projected $500M in annual revenue from Celestial by 2028, and includes a strategic warrant from Amazon. The move supports Marvell’s goal of $10B in next-year revenue and a 25% increase in data center sales.

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!Reuters

Marvell shares jump as chipmaker bolsters AI ambitions with Celestial deal

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Reuters

Wed, December 3, 2025 at 5:11 AM EST 2 min read

* StockStory Top Pick

[AVGO

-1.17%](/quote/AVGO/ "AVGO")

[NVDA

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* [AMZN

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Dec 3 (Reuters) - Marvell Technology (MRVL) shares climbed 9% premarket on Wednesday after its $3.25 billion deal to acquire semiconductor startup Celestial ​AI deepened investor confidence in the chipmaker's push into next-gen AI ‌infrastructure.

The company is doubling down on AI infrastructure to regain momentum after a tough ‌year marked by intense competition in its custom AI chips and networking. Its shares are down about 16% so far this year.

The Celestial AI deal adds photonic tech for next-gen data centers, putting Marvell in direct competition ⁠with Broadcom and Nvidia ‌as hyperscalers race to build faster, energy-efficient systems amid the generative AI boom.

The company also issued a warrant to ‍Amazon.com, allowing the tech giant to buy Marvell shares tied to its purchases of photonic fabric products through 2030.

"In our view, Celestial AI, with blessing from ​Amazon, bolsters Marvell's CPO (co-packaged optics) technology for custom XPUs and scale-up ‌switching, making Marvell a stronger contender," TD Cowen analysts said.

Photonics fabric tech uses light instead of electrical signals to link AI chips and memory for next-gen data centers.

The Celestial tech will be used in Marvell's next-generation photonics-related infrastructure products, which will contribute to a new $10 billion market for ⁠Marvell, CEO Matt Murphy told Reuters ​on Tuesday.

Celestial's technology is projected to contribute $500 ​million in annualized revenue by late-fiscal 2028, doubling to $1 billion a year later.

Marvell expects roughly $10 billion in revenue for its ‍next fiscal year, ⁠fueled by a 25% jump in data center sales. The Santa Clara, California-based company estimated its custom chip revenue to rise 20% ⁠next year.

Marvell trades at a 12-month forward price-to-earnings ratio of 27.25, below Broadcom's 38.39, ‌according to LSEG data.

(Reporting by Rashika Singh and Siddarth S ‌in Bengaluru; Editing by Sriraj Kalluvila)

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