Marvell Technology (MRVL) surged 10.59% in pre-market trading on Wednesday following the release of its fiscal Q3 results, which exceeded analyst expectations, and the announcement of a transformative $3.25 billion acquisition of Celestial AI. The chipmaker reported adjusted earnings of $0.76 per share, beating the consensus estimate of $0.73, while revenue rose 37% year-over-year to $2.07 billion, driven by robust demand for its data center products.

The acquisition of Celestial AI, a leader in photonic fabric technology for optical interconnects, is set to strengthen Marvell's position in next-generation AI data center connectivity. The deal, valued at $3.25 billion ($1 billion in cash and $2.25 billion in stock), is expected to close in early 2026, with meaningful revenue contributions anticipated by fiscal 2028. CEO Matt Murphy highlighted the company's optimistic outlook, projecting data center revenue growth of over 25% in the next fiscal year.

Analysts reacted positively to the news, with several firms, including Oppenheimer and Jefferies, raising their target prices for Marvell's stock. The company's strong performance and strategic moves have reignited investor confidence, positioning Marvell as a key player in the AI and cloud infrastructure markets.