New York, February 4, 2026, 15:18 EST — Regular session
- Shares of Marvell Technology slipped roughly 2% in afternoon trading
- Company finalized the Celestial AI acquisition but warned of short-term expenses and an increased share count
- Traders are focused on the upcoming earnings report for clues on demand and how well integration is advancing
Shares of Marvell Technology, Inc. dropped roughly 2% on Wednesday, retreating along with other AI-focused chip stocks. By the afternoon, Marvell was trading at $74.06, down 2%.
The move follows Marvell’s completion of its acquisition of Celestial AI just two days ago. The optical interconnect specialist aims to speed data transfer within large AI systems. Marvell said the deal drained about $1 billion from its cash reserves, added roughly $50 million in annual non-GAAP operating expenses—excluding some costs—and increased diluted weighted-average shares outstanding by around 27 million. CEO Matt Murphy said, “Celestial AI will enable us to advance Marvell’s long-term strategy.” The company expects initial revenue from Celestial AI in the second half of fiscal 2028, with a ramp-up to a $500 million annualized run rate by the fourth quarter, doubling to $1 billion by fiscal 2029’s fourth quarter. (Marvell Technology, Inc.)
A filing revealed Marvell issued 24,601,976 unregistered shares to finalize the deal and took on roughly 3 million Celestial options, which it plans to register via a Form S-8. The company could also issue additional shares valued up to $2.25 billion based on the signing-date price if Celestial hits cumulative revenue targets through the end of Marvell’s fiscal 2029, according to the filing. This “earnout” setup ties payout to performance, potentially leading to more dilution if those targets are met. (Marvell Technology, Inc.)
Marvell took a hit amid a tough day for semiconductors and other fast-growing tech names, as doubts surfaced over how soon heavy AI investments will translate into profits. “The market is suddenly skeptical and concerned about it,” said Jed Ellerbroek, a portfolio manager at Argent Capital in St. Louis. The Philadelphia Semiconductor Index dropped 5.4%, while Nvidia slid 3.7%. (Reuters)
Advanced Micro Devices weighed on sentiment after projecting first-quarter revenue around $9.8 billion, plus or minus $300 million, down from the $10.27 billion reported in the fourth quarter. Shares dropped on the news. Bernstein analyst Stacy Rasgon noted that near-term AI figures “are not really inflecting” without a lift from resumed sales in China. (Reuters)
Marvell investors face a clear but complicated equation: more shares and higher costs upfront, while the revenue boost is delayed by years. Traders are sorting through the deal-driven noise to gauge the true momentum in data-center orders.
That said, risks are obvious. Should AI infrastructure spending slow down or Celestial AI’s product rollout falter, Marvell might end up shouldering costs and integration burdens with investors growing impatient for growth to materialize.
Marvell’s next earnings report is set for Feb. 26, according to Investing.com. Investors will focus on demand signals linked to AI connectivity and look for an initial assessment of how the Celestial integration is shaping up within the data-center segment. (Investing)
