Marvell Technology (MRVL) exceeded Q3 expectations and acquired Celestial AI for up to $5.5 billion, focusing on advanced photonic interconnect technology. Stock spiked +9% and reached over $100 a share. Q3 sales hit $2.07 billion, with EPS at $0.76. Strong guidance projects revenue growth exceeding 40% and EPS at $0.79.

The Celestial AI acquisition is valued at $3.25 billion in cash and stock, with the potential to rise to $5.5 billion based on revenue milestones. Marvell aims to compete with Broadcom and Nvidia in next-gen AI infrastructure. The deal is expected to be completed in the first half of 2026.

Marvell’s stock is trading at a reasonable 32X forward earnings multiple, closer to the industry average. The company expects data center revenue growth to be higher next year. With a Zacks Rank #2 (Buy), Marvell’s EPS growth and valuation are appealing to investors in the AI landscape.

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Read more at Nasdaq: Buy the Spike in Marvell Technology Stock After Q3 Earnings?