Benchmark Reiterates Hold on Marvell (MRVL) After Celestial AI Deal

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 Buzzing AI Stocks on Market Radar. On February 3, Benchmark analyst Cody Acree reiterated a Hold rating on the stock, maintaining its forecast with no FY27 change.

Bechmark’s rating follows Marvell’s Monday announcement that it has completed its previously announced acquisition of Celestial AI, an optical interconnect technology supplier for scale-up connectivity.

The firm noted that its FY27 expectations remain unchanged as previously announced, with Marvell anticipating initial revenue from Celestial AI to begin in the second half of fiscal 2028.

The revenue will begin with a relatively small contribution in the third quarter of that year, before ramping to $125 million in the fourth quarter with a $500 million annualized run rate.

Benchmark added that at this point, revenue contribution should fully offset the dilutive impact of increased operating expenses, lower interest income, and increased share count dilution.

For fiscal year 2029, Marvell projects that revenue from Celestial AI to continue ramping throughout the year and to exit Q4FY29 at $250 million, or a $1 billion annualized run rate.

Marvell Technology, Inc. (NASDAQ:MRVL) develops and manufactures semiconductors, with a heavy focus on data centers.

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Disclosure: None. This article is originally published at Insider Monkey.