Marvell Technology shares surge 8.69% after-hours as AI acquisition and semiconductor sector recovery drive optimism.

Marvell Technology surged 8.69% in after-hours trading following the completion of its acquisition of Celestial AI, a strategic move to enhance its optical interconnect technology for AI data centers. This development aligns with broader semiconductor sector strength, fueled by increased demand for AI infrastructure and positive momentum from industry leaders like Nvidia. The acquisition, which grants Marvell access to photonic fabric technology, is positioned as a long-term growth catalyst despite near-term concerns about potential share sales from former Celestial AI shareholders. The stock’s rally reflects market optimism about Marvell’s AI-focused expansion, overshadowing short-term execution risks.