US Stocks Rise as Marvell Soars 10% on Strong Earnings and AI Deal - Bio Points News

US Stocks Edge Higher Ahead of Key Economic Data

U.S. stock futures pointed to a positive open on Wednesday as investors looked forward to fresh economic numbers that could shape the Federal Reserve’s next interest-rate decision. The mood remained cautiously optimistic, with attention also turning to strong corporate results from the semiconductor sector.

Marvell Technology Jumps on Impressive Results

Marvell Technology led the pre-market gainers, rising nearly 10% after reporting better-than-expected third-quarter earnings and unveiling a major acquisition in the fast-growing artificial intelligence space.

The chipmaker posted revenue of $2.08 billion for its fiscal third quarter ended November 1, 2025, slightly above the $2.07 billion analysts had forecast. Adjusted earnings per share came in at 76 cents, beating estimates by 3 cents. The data-center segment, powered by demand for AI infrastructure, generated $1.52 billion—up 38% year-over-year and representing three-quarters of total revenue.

CEO Matt Murphy called the results a sign of Marvell’s growing leadership in custom silicon and AI networking. The company also issued upbeat guidance, projecting fourth-quarter revenue of around $2.2 billion.

$3.25 Billion Deal for Celestial AI

Adding to the excitement, Marvell announced it will acquire Celestial AI, a startup specializing in optical interconnect technology, for $3.25 billion in cash and stock. The price could rise to $5.5 billion if certain revenue targets are met.

The acquisition brings photonic fabric technology that replaces traditional copper connections with light-based links, dramatically improving speed and energy efficiency in large AI data centers. The deal is expected to close in the first quarter of 2026 and start contributing meaningful revenue in the second half of fiscal 2028.

Analysts welcomed the move as a strategic step to strengthen Marvell’s position against competitors like Broadcom and Nvidia in the booming AI infrastructure market.

Broader Market Awaits Jobs and Services Data

Beyond Marvell, futures for the major indexes showed modest gains. Dow Jones futures added about 80 points, S&P 500 futures rose 0.13%, and Nasdaq futures edged up 0.10%.

Investors are focused on several economic reports due Wednesday morning. The ADP private-sector employment report for November is expected to influence expectations for Friday’s official jobs data. Separate purchasing managers’ indexes for the services sector will give the latest read on the health of the U.S. economy, which still makes up the bulk of activity.

A softer-than-expected ADP figure or slowing services growth could reinforce bets on a Federal Reserve rate cut at the December meeting, currently priced in at around 87%.

What It Means for Investors

The combination of solid corporate earnings from AI-related companies and growing confidence in easier monetary policy helped lift sentiment after a choppy start to the week. While risks remain—especially around trade policy and inflation—strong demand for artificial intelligence technology continues to support the tech-heavy segments of the market.