New York, January 23, 2026, 15:43 EST — Regular session underway
Shares of Marvell Technology (MRVL) dropped 3.9%, closing at $79.90 on Friday afternoon, off from $83.10 in the prior session. The stock fluctuated between $84.33 and $79.73, with trading volume exceeding 9 million shares.
The drop came despite U.S. antitrust regulators granting an “early termination” of the waiting period tied to Marvell’s planned acquisition of Celestial AI, according to an FTC notice. That approval is significant, as Marvell has positioned the deal as a strategic move further into AI data center infrastructure—one of the main drivers behind recent market activity. (Federal Trade Commission)
Early termination is part of the Hart-Scott-Rodino merger review. It cuts short the statutory waiting period before it expires, allowing parties to close the deal once other conditions are met, according to the agency. (Federal Trade Commission)
Marvell disclosed in a filing that its Celestial AI acquisition is pegged at around $3.25 billion, with $1.0 billion paid in cash and about 27.2 million Marvell shares exchanged at closing. A presentation on the deal revealed Marvell could pay up to an additional $2.25 billion in contingent consideration tied to Celestial’s revenue targets through fiscal 2029. The transaction is expected to wrap up in the first quarter of calendar 2026. (Marvell Technology, Inc.)
Celestial’s edge lies in photonics—leveraging light instead of electrical signals to connect chips and memory in next-gen data centers. When the deal was announced, Reuters noted it thrusts Marvell into a tighter race against Broadcom and Nvidia, as hyperscalers push to develop faster, more energy-efficient AI systems. (Reuters)
Friday’s slide reflected a wider retreat from risk after Intel plunged 17.8% on a disappointing forecast. “Even with more volatility, there’s now greater confidence in investing beyond artificial intelligence,” said Michael Kantrowitz, chief investment strategist at Piper Sandler. (Reuters)
Marvell has been aggressively pursuing deals tied to AI connectivity. On Jan. 6, it struck a $540 million deal to acquire XConn Technologies, aiming to broaden its PCI Express and Compute Express Link switching lineup — key standards linking processors, accelerators, and memory. CEO Matt Murphy called the move “a compelling switching platform for accelerated infrastructure,” reinforcing Marvell’s push into next-gen AI and cloud data center connectivity. XConn CEO Gerry Fan touted their portfolio as “the industry’s highest-port-count advanced PCIe 5 and PCIe 6 switching portfolio.” (Marvell Technology, Inc.)
Still, the stock moves within a market that’s swift to penalize any hint of dilution, setbacks, or added execution risk. Progress on antitrust fronts doesn’t halt the wider semiconductor selloff, nor does it ensure a seamless integration.
Investors are eyeing earnings as the next key event. Nasdaq currently estimates Marvell’s report date around March 4. Traders will be watching closely for updates on data-center demand and any new information about the timing of the Celestial AI deal closing. (Nasdaq)
