Marvell Technology Clears Final Hurdle for Strategic AI Acquisition

Marvell Technology US5738741041

Marvell Technology Inc. has successfully navigated a key regulatory review, paving the way for its planned acquisition of the artificial intelligence startup Celestial AI. This move is set to significantly bolster the semiconductor specialist's position in the high-growth data center and AI infrastructure markets.

The U.S. Federal Trade Commission (FTC) announced on Thursday that it had terminated the mandatory waiting period for the transaction ahead of schedule. This action effectively grants the necessary regulatory clearance. Announced in December 2025, the deal carries an approximate value of $3.25 billion, to be paid in a combination of cash and Marvell stock. The agreement includes potential additional stock-based earnouts, contingent upon Celestial AI achieving specific revenue targets through fiscal year 2029.

With this approval secured, the transaction is now anticipated to close within the current first quarter. Investor attention is consequently shifting to the company's upcoming quarterly report, scheduled for March 4, 2026. Market analysts project, on average, earnings of $0.79 per share for that period, which would represent a substantial year-over-year increase of more than 30 percent.

A Strategic Push into Optical Connectivity

The acquisition is fundamentally a technology play. By bringing Celestial AI into its portfolio, Marvell gains access to advanced silicon photonics expertise. This technology is considered critical for next-generation computing, as traditional copper-based interconnects face growing physical limitations concerning heat dissipation and data transfer speeds when handling massive modern AI workloads.

Marvell's strategy hinges on the industry's shift toward optical interconnects, which are expected to become essential for efficiently linking the vast processor clusters powering future AI systems. This purchase aligns with a broader strategic initiative to dominate data center connectivity, following the earlier acquisition of XConn Technologies. Industry observers interpret these moves as a concerted effort to establish a central role in the underlying architecture of advanced AI infrastructure.

Market Performance and Context

The market responded favorably to the regulatory news on Thursday. Despite this positive development, Marvell's shares closed at €71.42, a level still significantly below their 52-week high of €121.00. The stock has faced pressure since the start of the year, reflected in a decline of roughly 20 percent since January.

The completion of the Celestial AI deal is viewed as a pivotal step for Marvell to enhance its product offerings and capitalize on the accelerating demand for AI-optimized hardware, aiming to reverse its recent stock performance trend.