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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- 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.
- What Could Surprise Marvell Stock Investors On The Upside?
Marvell returned 184.2% over the past year, versus 14.0% for the S&P 500, after disclosing an expanded custom chip agreement with a hyperscaler that includes a warrant. Management said revenue from programs through fiscal 2028 is already in its custom revenue target, with the bigger impact expected in fiscal 2029 and beyond, and it expects custom to more than double in fiscal 2028. News reports said Marvell set a fiscal 2031 revenue target of $70 billion to $90 billion at its October 6, 2026 Investor Day, while the stock traded at 23.9 times sales versus 3.2 for the S&P 500 and closed 20.4% below its June 4 high. The article notes faster custom growth weighs on gross margin, which was 58.9% in fiscal Q2 and is guided to 57.5% to 58.5% for fiscal Q3. Following the October 28 close, news reports said Marvell was in advanced talks to acquire Lumentum, sending shares down roughly 10% in after-hours trading.
- Lumentum stock jumps on report of possible merger with Marvell
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%.
- If You Invest $1,000 in Marvell Today, Here’s What It Could Be Worth by 2030
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.
- Marvell Slipped Over The Last Month and Then Crashed Massively on the Lumentum Announcement: This Wall Street Desk Doubled Down on Its 130% Gains Prediction
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.
- Marvell gives up a third of itself to buy its laser supplier
Marvell investors had grown hesitant the previous week. The deal terms are now public, showing exactly who is paying for it.
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