Shares of Marvell Technology (MRVL; CEDEAR: MRVLD.BA) sat flat at $19.52 as investors digested a string of aggressive AI infrastructure moves — two completed acquisitions and a brand-new high-capacity networking chip — that together represent management's wager that the AI industry's bottleneck is shifting from computing power to data plumbing.
Two Deals, Nearly $4 Billion, and a Race to Own AI Wiring
Marvell completed its acquisition of Celestial AI on February 2, 2026 , a maker of light-based chip connections that replace copper wiring inside massive AI server clusters. The deal cost roughly $3.25 billion in cash and stock. Eight days later, Marvell closed the purchase of XConn Technologies for approximately $540 million , adding chips that let processors share memory more efficiently. Together, the deals arm Marvell with a nearly complete toolkit for connecting AI hardware — but initial revenue from Celestial AI isn't expected until the second half of fiscal 2028, ramping to a $500 million annualized rate by year-end . XConn is expected to contribute just $50 million annualized by late fiscal 2027, reaching $100 million in fiscal 2028. Shareholders are financing growth now; the payoff is two years out.
A New Chip Designed to Compete with Broadcom's Best
On June 1, Marvell unveiled its 102.4 terabit-per-second networking switch — essentially a traffic controller that can route data between hundreds of AI processors simultaneously.
Running at under 1,000 watts, it claims 25% lower power than rival products , a crucial selling point as data-center power bills explode. But Broadcom's competing switch already offers identical throughput and has begun production shipping , meaning Marvell is playing catch-up.
Record Revenue Backs the Bull Case — For Now
Marvell posted record Q1 fiscal 2027 revenue of $2.418 billion, up 28% year-over-year, and guided Q2 to $2.7 billion.
Data centers drove 76% of total revenue.
Management raised full-year fiscal 2027 revenue guidance to roughly $11.5 billion and fiscal 2028 to approximately $16.5 billion.
What the Flat Price Is Telling You
Despite blockbuster guidance and Nvidia CEO Jensen Huang publicly calling Marvell "the next trillion-dollar company," the CEDEAR hasn't budged. The market appears to be weighing execution risk: Marvell committed $1 billion in prepayments to secure chip-making capacity , and integration costs from back-to-back acquisitions will pressure near-term margins. Revenue is accelerating, but the stock won't move until investors see those newly acquired technologies actually ship — and bill.