TLDR
- Marvell (MRVL) sees volatile trading post-Celestial AI acquisition news.
- MRVL drops 1.21% after announcing Celestial AI acquisition, recovery begins.
- Marvell stock swings after Celestial AI deal, with long-term growth in focus.
- Marvell’s Celestial AI acquisition stirs market volatility, stock drops 1.21%.
- MRVL stock dips but recovers following the Celestial AI acquisition announcement.
Marvell Technology Inc. (MRVL) experienced sharp intraday volatility on February 5, 2026, as its stock dropped to $72.84, marking a decline of 1.21%. This followed the company’s announcement of completing its acquisition of Celestial AI, an optical interconnect technology supplier. Despite an early dip in stock price, Marvell’s shares showed signs of recovery as midday approached, indicating potential volatility due to market reactions to the news.
Marvell Technology, Inc., MRVL
Marvell’s Acquisition of Celestial AI
Marvell finalized its acquisition of Celestial AI, which specializes in optical interconnect technology for scale-up connectivity. The deal marks an important expansion into advanced technologies aimed at enhancing Marvell’s data center offerings. Moreover, the company announced that it expects the first revenue contribution from Celestial AI in the second half of fiscal 2028, with early estimates pointing to modest contributions initially.
Revenue from Celestial AI is projected to grow steadily, reaching an annualized run rate of $500 million by Q4FY28. Benchmark analysts noted that this revenue increase would offset any short-term negative impacts from rising operating expenses and share dilution. The company emphasized that it expects the integration to bring long-term growth potential, although the initial contribution will be smaller.
Marvell’s acquisition aligns with its ongoing efforts to enhance its semiconductor portfolio and strengthen its position in the data center market. However, the company sees optical interconnects as crucial for increasing connectivity speed and efficiency, key drivers for next-generation data infrastructure. While the immediate impact may be limited, Marvell anticipates that the long-term effects will significantly benefit its growth strategy.
Stock Reaction to Acquisition Announcement
Marvell’s stock witnessed sharp declines early in the trading day, dropping to $72.84. The price later began to recover, reflecting a mix of reactions from market participants. This suggests a market response not only to the acquisition itself but also to concerns over its immediate impact on the company’s financials.
Investors may have been cautious due to the potential for a dilutive effect in the short term. With increased operating costs and a higher share count, Marvell faces pressures on its near-term profitability. However, analysts expect that these short-term challenges will be offset by long-term revenue growth from the new acquisition.
The volatility in Marvell’s stock reflects the uncertainty surrounding the integration of Celestial AI and its future financial contributions. Despite these concerns, Marvell remains focused on its long-term strategy, which aims for substantial growth in the coming years.
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