Benchmark Reiterates Hold Rating on Marvell

Benchmark analyst Cody Acree reiterated a Hold rating on Marvell Technology (NASDAQ: MRVL).

“With Marvell’s announcement Monday morning that it has completed its previously announced acquisition of Celestial AI, a supplier of optical interconnect technology for scale-up connectivity…Our FY27 revenue expectations are unchanged as previously announced, Marvell expects the initial revenue from Celestial AI to begin in the second half of fiscal 2028, beginning with a relatively small contribution in 3Q28, before ramping to $125 million from the acquisition in 4Q28, with a $500 million annualized run-rate.

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

For FY29, Marvell expects revenue from Celestial AI to continue ramping through the year and to exit Q4FY29 at $250M, or a $1 billion annualized run rate.”

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