Marvell to Buy Celestial AI; Shares Jump on Bullish Remarks

Marvell Technology Inc. rallied after reassuring investors that its custom chip-design unit is winning repeat orders, signaling continued growth as the company benefits from runaway spending on AI computing.

On a post-earnings conference call with analysts on Tuesday, Marvell said it’s more bullish about revenue growth next year and predicted that custom chip sales will increase 20%. Large customers have renewed orders, and Marvell said there won’t be a repeat of previous “air pockets,” when sales in that unit have declined.