The deal is an aggressive move for Marvell to acquire complimentary technology to its semiconductor networking business.
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Semiconductor company Marvell
on Tuesday announced that it will acquire Celestial AI for at least $3.25 billion in cash and stock.
The purchase price could increase to $5.5 billion if Celestial hits revenue milestones, Marvell said.
Marvell shares rose 13% in extended trading Tuesday as the company reported third-quarter earnings that beat expectations and said on the earnings call that it expected data center revenue to rise 25% next year.
Marvell shares surged on Friday after the company beat earnings expectations and issued strong guidance on continuing AI demand.
Nvidia has also made $2 billion investments in CoreWeave, Nebius and Coherent in recent months.
Marvell cleared the earnings bar analysts set for it, yet Wall Street remains split between taking a neutral versus bullish…
Marvell stock sunk after the artificial intelligence chipmaker gave weak guidance for the fiscal third quarter.
Marvell saw a $2 billion investment from Nvidia in March, as AI demand continues to surge.
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