New York, January 6, 2026, 13:09 ET — Regular session
- Marvell said it will buy XConn Technologies for about $540 million in a cash-and-stock deal.
- MRVL shares were down about 1% in afternoon trade after swinging between $87.64 and $94.15.
- Marvell expects XConn products to start adding revenue in the second half of fiscal 2027 and reach about $100 million by fiscal 2028.
Marvell Technology, Inc. said on Tuesday it will acquire XConn Technologies for about $540 million, a bet on the high-speed links that stitch together AI data centers. Marvell shares were down about 1.1% at $89.26 after earlier rising as much as 4.3% and then turning lower.
The move lands as chipmakers race to ease data bottlenecks inside AI servers, where moving information between chips can be as critical as raw compute. Switching silicon — chips that steer data traffic — can shape how quickly an AI model trains and how much power a cluster consumes.
XConn makes switching chips built around PCI Express (PCIe) and Compute Express Link (CXL), two standards used inside servers to connect processors, accelerators and memory. Marvell said the acquisition will also bolster its Ultra Accelerator Link (UALink) effort, an open standard aimed at linking many accelerators so they can act like one larger system.
Marvell said it will pay roughly 60% of the purchase price in cash and 40% in stock, with the stock component set using the company’s 20-day volume-weighted average price (VWAP), a trading-volume-weighted measure of average price. Chief executive Matt Murphy said the combination would create “a compelling switching platform,” while XConn CEO Gerry Fan said the companies share “a common vision” for high-speed connectivity. Marvell Technology, Inc.
The company said XConn is engaged with more than 20 customers, with PCIe 5 and CXL 2.0 switches already in production and PCIe 6 and CXL 3.1 products sampling. Marvell also said the deal adds engineers with experience in high-performance switching.
Marvell expects XConn products to begin contributing revenue in the second half of fiscal 2027 and to ramp to about $100 million in fiscal 2028, with the business becoming accretive to non-GAAP earnings — a profit measure that excludes certain items such as some acquisition-related costs. Analysts expect Marvell to record $12.75 billion in revenue in fiscal 2027, according to LSEG data, as it competes with larger rivals including Broadcom and Nvidia in data-center gear.
Chip and AI-linked stocks have drawn fresh attention this week as CES events in Las Vegas put new products and spending plans under the microscope, with investors still debating how quickly big AI outlays will translate into cash returns.
Still, the deal carries execution risk. Any delay in regulatory clearance, integration hiccups, or slower adoption of newer standards such as UALink could push out the revenue ramp, while a pullback in AI infrastructure spending would test demand for networking and connectivity parts.
Investors will watch for any further management commentary tied to CES through January 9, and for details on closing conditions as Marvell targets an early-2026 close for the transaction.
