New York, Jan 6, 2026, 18:54 EST — After-hours
- Marvell shares fell 2.2% to $88.23; the stock was little changed after the bell
- Marvell agreed to buy XConn Technologies for about $540 million in cash and stock
- A Marvell officer filed a notice for a proposed share sale, while Melius upgraded the stock to “buy”
Marvell Technology (MRVL.O) shares fell 2.2% to $88.23 on Tuesday, even as U.S. stocks ended higher, after the chipmaker agreed to buy networking technology firm XConn Technologies for about $540 million. The stock was little changed in after-hours trading.
The deal lands as investors scrutinize the plumbing behind the AI boom, not just the chips that do the math. As data centers scale up clusters of accelerators, bottlenecks often show up in the links that move data between processors, memory and servers.
Marvell has been leaning into that shift, pitching itself as a supplier of the connectivity that keeps large AI systems fed. Switching silicon — chips that direct traffic across high-speed links — has become a battleground as cloud companies plan bigger, denser racks.
Marvell said it will pay about 60% in cash and 40% in stock, with the equity portion set using its 20-day volume-weighted average price, a trading-volume adjusted average. CEO Matt Murphy called the combination “a compelling switching platform,” while XConn CEO Gerry Fan said the companies “share a common vision” for high-speed connectivity; Marvell expects XConn to start contributing in the second half of fiscal 2027 and to ramp to about $100 million of revenue in fiscal 2028, becoming accretive to non-GAAP earnings — an adjusted profit measure that strips out items such as acquisition costs. Marvell Technology, Inc.
Marvell is chasing a bigger role in AI infrastructure amid stiff competition from larger rivals such as Broadcom and Nvidia, as customers spend aggressively on data-center buildouts. Analysts tracked by LSEG expect Marvell to post $12.75 billion of revenue in fiscal 2027.
Melius Research upgraded Marvell to “buy” from “hold” on Monday and set a $135 price target, MarketBeat reported. The call put fresh focus on whether Marvell can translate its AI connectivity roadmap into durable, multi-year revenue ramps. MarketBeat
A Marvell officer, Mark Casper, filed a Form 144 on Monday for a proposed sale of 5,000 shares worth about $465,400, a filing showed. Form 144 is a notice of intent to sell securities under Rule 144 and does not guarantee a transaction will occur.
Looking ahead to the next earnings update, Marvell’s latest outlook called for quarterly revenue of about $2.2 billion, plus or minus 5%, for the period ending Jan. 31. It also projected adjusted earnings of about $0.79 per share, plus or minus $0.05, in the same forecast.
Still, the XConn deal must clear customary closing conditions, and Marvell will need to retain key engineering talent and keep customers on track to meet its ramp targets. A slower-than-expected adoption cycle for new interconnect standards, or sharper competitive moves in switching, could push the payoff further out.
Marvell has not announced the date for its next earnings release, but Wall Street calendars such as Zacks expect it around March 4. Investors will watch that report for guidance on data-center demand and any update on the timing for closing XConn.
