Marvell Technology is in advanced talks to acquire chip startup Celestial AI in a cash-and-stock deal potentially valued at more than $5 billion.

Marvell Technology is capitalizing on the AI boom with its $3.25B acquisition of Celestial AI, enhancing its high-speed networking and custom chip portfolio. MRVL expects AI-driven data center revenue growth of 45% in FY2026 and 40% in FY2028, supported by multiple design wins with major hyperscalers and deepened AWS engagement.

The market woke up. After months of obsessing over who builds the "Brains" for AI (Nvidia), Wall Street just realized it forgot who builds the "Nervous System."

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Marvell reported quarterly adjusted earnings of 76 cents per share, which beat the analyst estimate of 73 cents, according to Benzinga Pro. Quarterly revenue came in at $2.08 billion, which beat the Street estimate of $2.07 billion and was up from revenue of $1.52 billion from the same period last year.

It was only a matter of time before Marvell was going to make another silicon photonics acquisition, and the $2.5 billion sale of its automotive Ethernet

The initial $3.25 billion will be paid once the transaction has been approved by regulators, expected early next year. Marvell said the maximum payout of $5.5 billion will be triggered if Celestial AI manages to generate $2 billion in cumulative revenue by the end of Fiscal 2029.

Marvell jumps after the chip maker beats Wall Street’s earnings targets and announces the acquisition of an AI start-up.