Marvell stock fell on Monday after the company agreed to acquire Lumentum at a value of $115 billion. The article provides no further details on the deal.
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- Marvell to buy Lumentum in all-stock deal, a massive bet on AI connectivity
Marvell said it will acquire optical component maker Lumentum in an all-stock, fixed-ratio deal with an implied enterprise value of $115 billion, aiming to meet growing connectivity demand from AI infrastructure. Each Lumentum share will be exchanged for 4.5 Marvell shares, so the deal's value will move with Marvell's share price, and it is expected to close in the first half of 2028. Chairman and CEO Matt Murphy said AI infrastructure is shifting toward optical connectivity, and the acquisition lets Marvell combine electrical and optical technologies. The move follows Marvell's multibillion-dollar purchase of Celestial AI earlier this year, and comes as its market value has more than tripled over three years. Lumentum's stock has more than doubled in 2026, while Marvell shares fell 3% and Lumentum about 4% before the bell.
- Marvell to acquire Lumentum in $115 billion AI connectivity deal
Marvell Technology announced it will acquire Lumentum Holdings in an all-stock deal valued at $115 billion, which it calls one of the largest tech industry deals ever. Lumentum makes lasers, circuit switches and other products for data centers, and Marvell said the combined company would become a “category leader in AI connectivity.” The deal requires stockholder approval and is expected to close in the first half of 2028. Earlier this year Nvidia said it was buying a $2 billion stake in Lumentum, according to Bloomberg; after the announcement, Marvell shares fell more than 1% and Lumentum nearly 3%.
- Marvell Slides 3%, Lumentum Drops 6% on $115 Billion All-Stock Merger Deal; Coherent Climbs 2%
Marvell Technology agreed to acquire Lumentum Holdings in an all-stock deal with an enterprise value of $115 billion. Each Lumentum share would convert into 4.5 Marvell shares, which Marvell says implies $1,132 per share and a 23.9% premium, with closing expected in the first half of calendar 2028. Marvell expects more than $1 billion in annual run-rate cost savings, and the combination would bring its chip design together with Lumentum's laser production for AI optical connectivity. Marvell fell 3% to $190.43 and Lumentum dropped 6% to $788.51, with Lumentum trading below the implied deal value, a gap the article says usually reflects doubts about Marvell stock as deal currency, the long road to closing and antitrust review. Lumentum's Q1 FY2027 revenue was $1.26 billion, compared with the $1.25 billion consensus.
- Marvell and Lumentum officially plan to combine. Here's what to know.
The proposed deal would be financed with stock and target the in-demand optical-networking market.
- Marvell Plunges 13% on Lumentum Takeover Rumors: Make Your 3-5 Year Bet Right Now
Marvell (MRVL) shares fell 14.05% over the past week to $196.40 after reports of a possible takeover of Lumentum (LITE), and Marvell has issued no official statement. Lumentum's market cap is about $76.2 billion versus about $172.2 billion for Marvell, and the article says a deal would be a heavy lift, possibly requiring new stock or debt on top of $4.96 billion in existing debt. Marvell raised its fiscal 2027 revenue outlook to roughly $12 billion and fiscal 2028 to about $18 billion, and the stock trades at 26x forward earnings. Of 46 analysts covering the stock, 8 rate it Strong Buy, 32 Buy, 6 Hold and none Sell, with a consensus target of $340.56 implying 73.4% upside. Risks cited include reliance on a few hyperscalers and a beta of 2.26, and the fiscal third-quarter report, measured against guidance of $3.15 billion revenue and $1.10 non-GAAP EPS, is the next checkpoint.
- 8 Months Ago, A Major Wall Street Bank Said Buy Marvell. It’s Up More Than 150%. Here’s Where We See the Stock Going
BofA upgraded Marvell to Buy with a $110 target on March 6, 2026; the stock has since risen about 159% to $195.97, versus about 10.9% for the SPDR S&P 500 ETF. It more than quadrupled to $329.73 on June 18, 2026, then fell about 40.6%, and dropped 10.24% in the latest session as chip stocks sold off. BofA later lifted its target to $400; the article's one-year base-case target is $267.29, implying about 36.4% upside, with bull and bear cases of $350.26 and $206.17. Risks cited include reliance on a few hyperscalers, a Google warrant for up to 7% of shares, and a reported near-deal for Lumentum that could add dilution.
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