Marvell Technology (MRVL) shares surged 8.19% intraday on Tuesday after the company reported better-than-expected fiscal Q3 results and announced a transformative $3.25 billion acquisition of Celestial AI. The chipmaker posted adjusted earnings of $0.76 per share, beating estimates of $0.73, while revenue rose 37% year-over-year to $2.07 billion, driven by robust demand for its data center products.

CEO Matt Murphy highlighted record data center revenue, which grew 38% year-over-year to $1.52 billion, accounting for the majority of the company's sales. Marvell also issued upbeat Q4 guidance, forecasting revenue of $2.20 billion (±5%), slightly above Wall Street expectations. The company expects data center revenue to grow by over 25% in the next fiscal year, signaling strong momentum in AI infrastructure demand.

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. Investors cheered the strategic move, which aligns with Marvell's focus on high-growth AI and cloud markets.