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Marvell stock surged 5% after beating Q3 forecasts and announcing a $3.25 billion deal to buy Celestial AI. The acquisition aims to expand Marvell's optical interconnect offerings and speed data transfers in data centers. The deal has increased the AI marketability of Marvell and might reduce third-party optics in the market. Analysts note implementation risk and milestone-based earnouts, giving investors a one-week execution all-or-nothing outcome.

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