Marvell Technology Inc (NASDAQ:MRVL) stock rose 4.64% (As on December 3, 11:22:17 AM UTC-4, Source: Google Finance) after the company reported upbeat guidance for the current-quarter following better-than-expected third-quarter results just as the chipmaker looks to accelerate its AI datacenter growth with acquisition of chip startup Celestial AI. The company also said it had acquired Celestial AI, which further “strengthens Marvell’s position at the forefront of one of the fastest-growing opportunities in AI datacenter infrastructure.” On August 14, 2025, the Company completed the sale of its automotive ethernet business to Infineon Technologies AG for $2.5 billion in cash, which resulted in a pre-tax gain on sale of $1.8 billion. Marvell’s results for the third quarter of fiscal 2026 include the results of the automotive ethernet business through the sale date, while prior periods presented include the results of the automotive ethernet business for the entire period. Non-GAAP net income for the third quarter of fiscal 2026 was $655.0 million. Cash flow from operations for the third quarter was $582.3 million.

MRVL in the third quarter of FY26 has reported the adjusted earnings per share of 76 cents, beating the analysts’ estimates for the adjusted earnings per share of 74 cents. The company had reported the adjusted revenue growth of 37 percent to $2.08 billion in the third quarter of FY26, beating the analysts’ estimates for revenue of $2.07 billion. Excluding revenue from the divested automotive Ethernet business, the implied revenue growth for Marvell’s go-forward business was approximately 6% sequentially and 41% year-over-year. Momentum in the data center business remained strong, with revenue growing 38% year-over-year, fueled by robust AI demand. The company also saw a strong recovery in our communications and other end market, where revenue grew 34% year-over-year as reported and nearly 50% year-over-year, excluding the automotive Ethernet business

For Q4, the company forecast non-GAAP diluted net income per share of $0.79 at the midpoint on revenue of $2.20B, topping estimates of $0.77 on revenue of $2.17B. Q4 2026, Non-GAAP gross margin is expected to be 58.5% to 59.5%. Looking ahead the company sees data center revenue growth for next year now higher than prior expectations and said it expects full-year revenue growth to exceed 40%. The forecast shows Celestial AI’s revenue reaching a $500 million annualized run rate in the fourth quarter of fiscal 2028, doubling to a $1 billion run rate by the fourth quarter of fiscal 2029.