Marvell shares fell 11.4% to $222.97 after reports that the chipmaker is close to a megadeal for Lumentum, though the stock is still up 162.82% year to date. The article's illustrative model puts the base case at $1,549.31 for a $1,000 investment by October 2030, with a bear case of $926.36 and a bull case of $2,095.58. Second-quarter fiscal 2027 revenue reached $2.74 billion, up 36.5%, and management expects fiscal 2027 revenue of roughly $12 billion, up approximately 45%. Risks include data center making up 79% of revenue, a concentrated group of hyperscaler customers, total debt of $4.96 billion, and Morningstar's warning that the Lumentum deal risks a steep overpay. The consensus analyst target is $341.44.
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- Marvell in advanced talks to buy Nvidia-backed Lumentum – report
According to Bloomberg, which cited unnamed sources, Marvell Technology is in advanced talks to buy Lumentum Holdings in an all-stock deal that could be announced as soon as next week, though the talks could still end without a transaction. Marvell is valued at around $196 billion and Lumentum at about $85 billion; if completed, the deal would give Marvell more control over optical technology used in AI data centres. Lumentum makes lasers and optical components for high-speed data transfer, and its CEO Michael Hurlston said its products are sold out through early 2029 and it may be unable to meet about 70% of demand for some products next year. Marvell already buys lasers from Lumentum, and an acquisition would give it more direct access to optical technology and manufacturing capacity.
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Marvell Technology shares fell 13.9% as of 2:44 p.m. ET on Thursday, October 29, after Bloomberg reported that the chipmaker is in advanced talks to acquire Lumentum, a maker of optical components for AI data centers. The report said an announcement could come as early as next week, though nothing has been finalized. Marvell has about $3.93 billion in cash and equivalents, and with Lumentum's $83 billion market cap, the deal is likely to be mostly stock, which would dilute existing shareholders. Marvell's optics acquisition last year was a smaller $3.5 billion deal that included $1 billion in cash. Meanwhile, Marvell's second-quarter revenue rose 37% to a record $2.74 billion.
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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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Marvell (MRVL) fell nearly 37% over the past month and 29.4% over the past week after announcing an all-stock deal to buy Lumentum (LITE), a steeper drop than AI chip peers, whose monthly declines ranged from 6.48% to 23.66%. Investors disliked paying in stock because it dilutes existing holders, and Marvell carries $4.963 billion in long-term debt while still integrating Celestial AI and XConn Technologies. Several of the 47 analysts covering the stock have cut targets since the deal, with the average target at $333.09 against a price of $171.97. Piper Sandler kept its Overweight rating and $400 target, calling the selloff an overreaction and citing second-quarter fiscal 2027 revenue of $2.739 billion, up 36.5%. The article notes most targets were set before the deal, so the average could drift lower.
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According to TrendForce, the combined Marvell-Lumentum company would approach a 7% market share after the merger. That would place it behind only NVIDIA and Broadcom.
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