Marvell Technology (MRVL) shares fell 12% on Thursday after reports it was in advanced talks to acquire optical components maker Lumentum Holdings (LITE), whose shares rose over 4% in early trading. Citing people familiar with the matter, Bloomberg reported a deal could be announced as soon as next week, though no final agreement has been reached and talks could still fail. Lumentum is valued at about $83 billion versus Marvell's $221 billion; backed by Nvidia, Lumentum makes lasers and optical components that move large volumes of data across networks and data centres as AI infrastructure grows. Marvell had about $3.92 billion in cash and equivalents at the end of its latest quarter, so Bernstein analysts cited by Reuters said a deal of this scale would probably need additional financing and could present integration challenges. Neither company has publicly confirmed the talks.
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- Marvell Sinks 13%, Lumentum Jumps 6% on Reported Acquisition Talks; Coherent Holds Flat, Applied Optoelectronics Drops 3%
Marvell shares fell 13% to $220 in morning trading, while Lumentum rose 6% to $965 after Bloomberg reported that Marvell is in advanced talks to acquire it, with a deal possibly announced as soon as next week and no final agreement yet. Lumentum has a market value of $82.8 billion against Marvell's $220.7 billion, and the two stocks were already up 159% and 162% year to date. Coherent was up 0.2% at $240, while Applied Optoelectronics fell 3% to $80, with investors seen as weighing the price and dilution risk of a large acquisition. Marvell already carries $4.963 billion of long-term debt, and a stock-heavy deal could add to dilution concerns. The article notes the terms could still change, so the outcome of the talks remains uncertain.
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Marvell (MRVL) stock fell 11% on Thursday after reports the AI chipmaker is in advanced talks to buy optical parts maker Lumentum (LITE), while Lumentum shares rose 5%. Bloomberg, citing people familiar with the matter, reported the potential multibillion-dollar deal could be announced as soon as next week. Lumentum has a market value of about $83 billion, versus roughly $221 billion for Marvell. The acquisition would give Marvell greater access to optical technologies and manufacturing capacity, which the article describes as critical bottlenecks in AI infrastructure. Marvell shares are up more than 190% year to date, and Lumentum shares have rallied 140%.
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According to Bloomberg News, Marvell (MRVL) is in advanced talks to acquire Lumentum (LITE), which Bloomberg valued at about $83 billion versus roughly $221 billion for Marvell, and an agreement could be announced soon. After hours, LITE rose 8.64% to $992.91 while MRVL fell 8.44% to $230.40, after both stocks had closed higher in regular trading. Neither company has confirmed the talks, and no signed agreement, price, premium, or cash-and-stock mix has been reported. Lumentum's fiscal fourth-quarter 2026 revenue rose 109.3% to $1.006 billion, while Marvell had about $3.92 billion in cash at the end of its latest quarter. The article argues Marvell would carry more risk given the undisclosed premium, financing needs and integration work, and notes that NVIDIA bought $2 billion of Lumentum Series A convertible preferred shares in March 2026.
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Bloomberg reported late on October 28, 2026 that Marvell Technology (MRVL) is near a deal to buy Lumentum Holdings (LITE), but nothing has been signed or announced and no price or structure has been disclosed. In premarket trading on October 29, MRVL fell about 11% to $222.81 while LITE rose about 5% to $961.90. Lumentum makes lasers and optical modules that carry data as light, a role that grows as copper hits limits on reach and bandwidth in larger AI systems, and its quarterly revenue reached $1.01 billion, up 109.3%. Bernstein analysts said a deal of this size would likely need more financing and could be hard to integrate, while Marvell had about $3.92 billion in cash. The author says that if no signed agreement or 8-K appears by November 13, 2026, Lumentum's gain would look thin.
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