Marvell Technology shares surge 8.73% after-hours following $3.25B Celestial AI acquisition and raised fiscal 2026 revenue outlook.

Marvell Technology surged 8.73% in after-hours trading following the announcement of its $3.25 billion acquisition of Celestial AI, a semiconductor startup specializing in photonics technology for advanced data centers. The deal, financed through $1 billion in cash and $2.25 billion in shares, positions Marvell to expand into a $10 billion addressable market and aligns with its strategic focus on AI-driven growth. The company also raised its fiscal 2025 revenue guidance to $2.2 billion for the fourth quarter, exceeding analyst expectations, and highlighted potential long-term benefits from the acquisition, including a 20% growth in custom chip revenue. The after-hours rally reflects investor optimism about Marvell’s enhanced technological capabilities and its strengthened position in the AI infrastructure sector.