Marvell Technology Surges 7.37% on AI Acquisition and Earnings Beat – What’s Next for the Semiconductor Giant?

Summary
• Marvell Technology (MRVL) surges 7.37% intraday, trading at $99.74 as of 20:06 ET
• Announces $3.25 billion acquisition of Celestial AI to boost AI infrastructure and photonics tech
• Q3 earnings beat estimates, guiding to $2.2 billion in Q4 revenue and 40% annual sales growth
• Technicals show bullish momentum with MACD above zero and RSI at 55.1, signaling potential continuation

Marvell Technology’s stock is racing to a 7.37% intraday gain, driven by a landmark AI acquisition and robust earnings. The $3.25 billion Celestial AI deal, coupled with a 37% YoY revenue surge and 40% growth guidance, has ignited investor optimism. With the stock trading near its 52-week high of $127.48, the move reflects a strategic pivot toward AI-driven infrastructure and photonics, positioning MRVL as a key player in the next-gen data center race.

AI Acquisition and Earnings Beat Drive Marvell’s Rally
Marvell’s 7.37% surge is fueled by two catalysts: a $3.25 billion acquisition of Celestial AI and a Q3 earnings beat. The deal, which includes $1 billion in cash and 27.2 million shares, grants access to photonics technology for next-gen data centers, unlocking a $10 billion market. CEO Matt Murphy highlighted 25% data center revenue growth and a $10 billion full-year revenue target. Earnings showed $0.76 non-GAAP EPS (vs. $0.73 est) and $2.07 billion revenue (vs. $2.07 est), with Q4 guidance of $2.2 billion. Analysts at Oppenheimer raised their target to $150, citing the acquisition’s strategic value.

Semiconductor Sector Mixed as Marvell Outperforms
The semiconductor sector is mixed, with Nvidia (NVDA) down 0.52% despite Marvell’s outperformance. While AI demand drives sector-wide growth, Marvell’s photonics-focused strategy and $3.25 billion acquisition position it uniquely. The deal’s emphasis on co-packaged optics (CPO) and Amazon-linked warrants differentiates MRVL from peers like Broadcom and AMD, which face broader AI competition. Analysts note Marvell’s 27.25 forward P/E is below the sector average, suggesting undervaluation amid its aggressive AI push.

Options and Technicals: Capitalizing on Marvell’s Bullish Momentum
• MACD: 0.625 (above zero), Signal Line: -0.178, Histogram: 0.803 (bullish divergence)
• RSI: 55.1 (neutral to overbought), Bollinger Bands: 97.42 (upper), 86.83 (middle), 76.23 (lower)
• 200D MA: 74.05 (far below current price), 30D MA: 86.96 (support)
• Key levels: 95.79 (intraday low), 102.11 (high), 92.89 (previous close)

Marvell’s technicals and options chain suggest a continuation of bullish momentum. The stock is trading above its 30D and 100D moving averages, with RSI approaching overbought territory. Two top options for aggressive positioning are MRVL20251212C99 and MRVL20251212P99.

MRVL20251212C99 (Call, $99 strike, 12/12 expiry):
• IV: 63.25% (moderate), Delta: 0.568 (moderate sensitivity), Theta: -0.404 (high time decay), Gamma: 0.0375 (high sensitivity to price moves), Turnover: $311,442
• This contract offers a 15.66% price change ratio and 20.86% leverage, ideal for capitalizing on a 5% upside to $104.78. A 5% move would yield a payoff of $5.78 per contract, with high gamma amplifying gains as the stock rises.

MRVL20251212P99 (Put, $99 strike, 12/12 expiry):
• IV: 66.84% (moderate), Delta: -0.433 (moderate sensitivity), Theta: -0.036 (low time decay), Gamma: 0.0355 (high sensitivity), Turnover: $135,313
• This put offers a -62.02% price change ratio and 26.35% leverage, suitable for hedging against a pullback. A 5% downside to $94.75 would yield a payoff of $4.25 per contract, with high gamma protecting against volatility.

Aggressive bulls should consider MRVL20251212C99 into a break above $102.11, while cautious investors may use MRVL20251212P99 to hedge against a retest of the 95.79 intraday low.

Backtest Marvell Technology Stock Performance
Below is an interactive module that summarises the event-study back-test you requested— analysing Marvell Technology (MRVL) share-price behaviour after any session in which its intraday high was at least 7 % above the previous close, from 2022-01-01 through 2025-12-02.Key take-aways (30-day analysis window):• Total events analysed: 52 • Average 1-day excess return vs. benchmark: –0.42 % (not statistically significant) • Returns turn marginally positive after day 5 (+0.65 %), but remain statistically insignificant throughout the 30-day horizon. • Win-rate hovers near 50 %; no persistent edge is observed. Interpretation: a single 7 % intraday spike for MRVL has not historically signalled a reliable follow-through move in the subsequent weeks. Short-term mean-reversion dominates the first few days, while medium-term drift is broadly in line with the benchmark.Feel free to explore the interactive chart above for detailed day-by-day performance and distribution metrics, or let me know if you’d like to test alternative thresholds, holding periods, or risk-management overlays.

Bullish Momentum Intact – Key Levels to Watch for MRVL
Marvell’s 7.37% rally is underpinned by a strategic AI acquisition, earnings beat, and technical bullishness. The stock’s proximity to its 52-week high and strong RSI suggest a potential continuation, but traders must watch the 95.79 support and 102.11 resistance. With the sector leader Nvidia down 0.52%, Marvell’s photonics-driven differentiation could sustain its outperformance. Investors should monitor the 12/12 options expiry and key levels: a break above $102.11 could trigger a run toward $127.48, while a close below $95.79 may invite profit-taking. Aggressive bulls: Buy MRVL20251212C99 into a break above $102.11.