Is Marvell Technology, Inc. (MRVL) One of the Best AI Stocks That Will Go to the Moon?

Marvell Technology Inc. (NASDAQ:MRVL) is one of the AI stocks that will go to the moon. On February 2, Marvell Technology Inc. (NASDAQ:MRVL) announced the completion of its acquisition of Celestial AI, a specialist in optical interconnect technology. The deal enhances Marvell’s capabilities in high‑bandwidth, low‑latency connectivity solutions for AI and cloud data centers. However, the acquisition is not expected to contribute to revenue until the second half of fiscal 2028.

On February 3, UBS lowered its price target on Marvell to $115 from $120, while maintaining a Buy rating. UBS noted that the Celestial AI acquisition will have a near‑term dilutive impact on earnings, projecting EPS reductions of about $0.20 in fiscal 2027 and $0.16 in fiscal 2028. Revenue from Celestial AI is expected to begin in Marvell’s fiscal third quarter of 2028, with Amazon as the initial customer, though expense dilution will not be offset until the fourth quarter of that year.

The firm maintained its 2026 revenue forecast at $9.7 billion but raised its 2027 projection to $12.7 billion. EPS estimates were lowered to $3.26 for 2026 and $4.69 for 2027. Overall, UBS sees Marvell’s strong financial position and expanded technology portfolio as supportive of long‑term growth, even as near‑term earnings face pressure from integration costs.

Marvell Technology, Inc. (NASDAQ:MRVL) is a major enabler of artificial intelligence (AI) infrastructure, focusing on high-speed connectivity, data storage, and custom compute silicon for data centers. It provides essential components, such as Ethernet switches, optical DSPs, and active electrical cables, that enable fast, low-latency communication between AI accelerators.

While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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