Marvell Technology, Inc. (MRVL): A Bull Case Theory 

We came across a bullish thesis on Marvell Technology, Inc. on CopyCat Invest’s Substack. In this article, we will summarize the bulls’ thesis on MRVL. Marvell Technology, Inc.’s share was trading at $100.20 as of December 3rd. MRVL’s trailing and forward P/E were 35.28 and 29.85 respectively according to Yahoo Finance.

Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions, spanning the data center core to network edge. MRVL delivered a strong Q3 performance, with revenue rising 36.8% to $2.075 billion, slightly ahead of expectations, and EPS climbing 76% to $0.76, beating estimates that had already been revised higher. Momentum is set to continue into Q4, with the company guiding to 21% revenue growth to $2.2 billion, above consensus, and EPS of $0.79 ± $0.05, supported by gross margins of 58.5–59.5%.

Against this strengthening backdrop, Marvell announced its acquisition of Celestial AI for $3.25 billion in a cash-and-stock deal that includes $1 billion in cash, 27.2 million shares, and a potential earnout of an additional 27.2 million shares. Celestial AI is described as a pioneer in disruptive photonic fabric technology designed specifically for large-scale optical interconnect, a capability expected to be increasingly critical as AI workloads intensify and traditional electrical interconnects approach their performance limits.

This acquisition positions Marvell to deepen its leadership across data center infrastructure, where optical connectivity is becoming the primary bottleneck for next-generation AI systems. The company expects Celestial AI to contribute meaningful growth, projecting an annualized revenue run rate of $500 million by Q4 2028 and doubling to $1 billion by Q4 2029.

The earnout structure reflects strong confidence in this trajectory, with one-third of the additional shares awarded if cumulative 4Q29 revenue reaches $500 million and the full earnout triggered only if cumulative revenue exceeds $2 billion. With accelerating earnings, above-consensus guidance, and a transformative acquisition that expands its strategic footprint in AI infrastructure, Marvell appears positioned for sustained growth and increasing relevance in the semiconductor ecosystem.

Previously we covered a bullish thesis on Marvell Technology, Inc. by Simple Investing in January 2025, which highlighted the company’s data-center-led growth and strengthening custom ASIC pipeline. The company’s stock price has depreciated approximately by 13.02% since our coverage. This is because the thesis didn’t fully play out amid market volatility. The thesis still stands as Marvell’s long-term cloud and silicon roadmap remains intact. CopyCat Invest shares a similar view but emphasizes the Celestial AI acquisition as a key catalyst.

Marvell Technology, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held MRVL at the end of the second quarter which was 73 in the previous quarter. While we acknowledge the risk and potential of MRVL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRVL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.