Marvell buys Celestial AI

Marvell Technology ($MRVL) is buying privately held Celestial AI in a deal valued at about $3.25 billion, with potential earn-outs that could lift the total price toward $5.5 billion. The goal is to own the optical “photonic fabric” that connects AI chips inside next generation data centres, replacing power hungry copper with faster, lower latency light based links.

WINNERS -

Group 1: AI connectivity and photonics chipmakers

Reason: Marvell’s move signals that high speed optical fabrics are becoming a core part of AI infrastructure, which can lift sentiment and long term demand across specialised connectivity names.

Marvell Technology ($MRVL)

Astera Labs ($ALAB)

Group 2: Hyperscale cloud and AI data centre operators

Reason: Optical scale up fabr ...