Home / Business and Economy / Marvell Soars on AI Growth Promises and Celestial AI Buy
Marvell Soars on AI Growth Promises and Celestial AI Buy
3 Dec
Summary
- Marvell expects custom chip sales to increase by 20% next year.
- The company is acquiring Celestial AI for at least $3.25 billion.
- Marvell anticipates its revenue could reach $10 billion next fiscal year.
Marvell Technology Inc. is experiencing a surge in its stock following optimistic projections for artificial intelligence-driven growth. The company anticipates a 20% increase in custom chip sales next year, assuring investors of recurring orders and signaling an end to previous sales "air pockets." This positive outlook is further strengthened by plans to acquire Celestial AI for a minimum of $3.25 billion, a strategic move aimed at enhancing its AI infrastructure.
This acquisition of the Santa Clara-based startup, Celestial AI, is set to close in the first calendar quarter of 2026. The deal includes an upfront payment and potential additional payouts contingent on Celestial AI achieving significant revenue targets by fiscal year 2029. Celestial AI's innovative photonic fabric technology utilizes light for more efficient data transfer within AI systems, promising faster processing speeds.
With these advancements, Marvell's Chief Executive Officer, Matt Murphy, expressed strong confidence in the company's outlook, suggesting revenue could surpass $10 billion in the next fiscal year, exceeding current analyst predictions. This news sent shares up over 15% in late trading, reversing earlier losses and underscoring Marvell's strategic positioning in the booming AI computing market.
