Marvell Acquires Celestial AI; UBS Cuts Price Target to $115
Marvell completed acquisition of Celestial AI on Feb 2, enhancing optical interconnect tech for high-bandwidth, low-latency AI infrastructure but won’t generate revenue until H2 fiscal 2028. UBS cut Marvell’s price target to $115, reduced fiscal 2027 EPS by $0.20 and 2028 EPS by $0.16, retaining its Buy rating.
1. Acquisition of Celestial AI Completed
On February 2, 2026, Marvell finalized its acquisition of Celestial AI, gaining specialized optical interconnect technology aimed at high-bandwidth, low-latency AI and cloud data center applications.
2. Revenue Timeline and Integration Costs
Revenue from Celestial AI is slated to begin in Marvell’s third quarter of fiscal 2028 with Amazon as the first customer, but integration expenses will weigh on earnings until the fourth quarter of that year.
3. UBS Forecast Adjustments
UBS lowered its price target on Marvell to $115 from $120 and adjusted EPS estimates down by $0.20 for fiscal 2027 and $0.16 for fiscal 2028, yet maintained a Buy rating while keeping 2026 revenue at $9.7 billion and raising the 2027 forecast to $12.7 billion.
4. Strategic Impact and Growth Outlook
The acquisition broadens Marvell’s AI infrastructure portfolio with advanced optical DSPs and switches, reinforcing its position in next-generation data center connectivity and underpinning long-term growth despite near-term earnings pressure.