Marvell shares fell 27.36% over the past month even as guidance kept rising. The 24/7 Wall St. price target of $264.74 implies 34.8% upside from Friday's close of $196.40, with a buy rating at 90% confidence. The selloff follows Marvell's agreement to buy Lumentum, an optical laser and module maker, which Barron's linked to investor dislike of a deal valued at roughly $76.15 billion. Fiscal Q2 2027 revenue rose 36.5% to $2.739 billion, and the company raised its fiscal 2028 outlook to roughly $18 billion from $16.5 billion. Risks include dilution from deal financing, Data Center making up 79% of revenue, and Q3 gross margin guidance of 57.5%-58.5%, below Q2's 58.9%.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
MarvellLumentummergers and acquisitionssemiconductorsdata centers
Open a keyword to see other news on the same topic.
Related news
- 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.
- Marvell’s Lumentum Bid Is a Bet That Light, Not Copper, Wins the AI Data Center
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.
- Marvell’s $115 Billion Deal Has Lost More Than a Third of Its Value
Marvell agreed to buy Lumentum in an all-stock deal with an implied enterprise value of $115 billion, with each Lumentum share converting into 4.500 Marvell shares under a fixed ratio that has no price protection. Marvell shares have fallen 36.5% from the last unaffected close, turning the offer's 23.9% premium into a discount, and Lumentum closed at $626.75, about 12.8% below the $719.10 value of the offer. The article reads this wide spread as doubt about the deal closing on current terms or about Marvell's stock, with closing expected in the first half of calendar 2028 pending shareholder votes, antitrust and foreign-investment reviews. Analyst targets averaging $321.87 imply about 101% upside, but the article says many were likely set before the deal, even as fiscal second-quarter revenue rose 36.5% to $2.739 billion and third-quarter revenue is guided to $3.150 billion. The companies project more than $1 billion in annual cost savings, and the article concludes the stock case looks weaker than the business case.
- Lumentum Fell to $750 With Marvell’s Offer Worth $820. Its November 5 Report Tests the Floor
Lumentum agreed to be acquired by Marvell Technology for 4.5 Marvell shares per Lumentum share, a package worth $820 at Marvell's $182 price, while Lumentum fell to $750; the deal is expected to close in the first half of 2028. Lumentum traded at 26x forward earnings, below its five-year average of 30x, and the article says the stock would be about 17% higher at that average multiple than Monday's close. Its September-quarter revenue rose 136.5% to $1.26 billion, adjusted EPS of $4.57 beat its $4.05–$4.35 range, and it guided to $1.575–$1.625 billion revenue for the December quarter. The article identifies the main risk as an easing of the laser shortage, noting the CEO said parts were effectively sold out through early 2029 and that Coherent's report on Wednesday is the first test. Alphabet's Google Cloud revenue rose 103% and Arista guided to 38%–40% growth in 2027, suggesting customers are still spending heavily.
- Marvell's Deal to Acquire Lumentum Could Be a Game Changer for the Stock
Marvell, up more than 130% in 2026 as of the end of October, has agreed to acquire Lumentum to combine its optical interconnect expertise with Lumentum's laser technology. The companies expect $1 billion in annual synergies, mostly from lower cost of goods sold, and a $17.7 billion annual revenue run rate before synergies. Lumentum shareholders will receive 4.5 Marvell shares per share, valuing Lumentum at an enterprise value of $115 billion, or about $1,132 per share, roughly a 24% premium to its pre-announcement close. Lumentum reported fiscal first-quarter revenue up 137% to $1.26 billion, while Marvell guided current-quarter revenue up 52%. The deal is expected to close in the first half of calendar 2028, and the article views Lumentum as a discounted way to gain exposure to Marvell, although the deal could still fail.
- Marvell and Lumentum shareholders unite in panning merger deal: “It's a trash offer”
Marvell agreed to buy Lumentum in an all-stock deal, and shares of both companies fell Monday. Shareholders of both companies have criticized the offer, with one describing it as “a trash offer.”
Related markets
Latest news
- Reddit Sinks 8% as Social Ad Worries Deepen in Tech Rout
Reddit (RDDT) shares fell 8% amid a broad tech selloff, after Snap reported only 4% ad revenue growth in the third quarter. The article argues Snap's slowdown is largely its own issue, since Meta's third-quarter revenue rose 26% to $64.6 billion. The bigger risk for Reddit is lost search traffic from Google's AI answers, which contributed to fourth-quarter revenue guidance of $1.00 billion to $1.03 billion, below expectations. Reddit's third-quarter revenue still rose 53% to $895 million, though analysts trimmed their 2027 revenue estimate to $4.34 billion from $4.47 billion. The article names the data-licensing renewal with Google, due in early 2027, as the next key test.
- Amazon-Uber Eats Deal Sends DASH Stock To Biggest Drop In A Year
DoorDash (DASH) shares fell 10% on Thursday after Amazon and Uber Technologies (UBER) announced a partnership giving Prime members free delivery on Uber Eats restaurant orders of $25 or more placed through Amazon's website or app, across the U.S. The deal replaces Amazon's previous Grubhub partnership, and Amazon estimates frequent users could save more than $175 a year, though service fees still apply. The article argues the arrangement gives Uber Eats immediate access to Amazon's large Prime base, raising competition for DoorDash, which holds a dominant share of U.S. restaurant delivery spending. Less than two weeks earlier, DoorDash agreed to acquire Instacart (CART) for roughly $17 billion, or $65 per share, with closing expected in late 2027 or early 2028. DASH stock is down 22% year to date.
- Amazon.com (AMZN) Could Gain From Slower AI Data Center Expansion
The article says Democrats' win in the 2026 U.S. midterm elections on November 5, 2026 could bring tighter scrutiny of AI infrastructure spending and new limits on large data center expansion, which could favor cloud providers such as Amazon that already operate substantial computing capacity. It cites Amazon's US$225b in Trainium commitments and US$578b backlog, against guided 2026 capex of about US$220b. The suggested early indicator is whether that backlog and new AI deals show up in AWS usage growth and operating cash flow. The article also flags that higher regulatory friction around power and tax treatment could weigh on free cash flow if the economics of AI spending shift.
- Top Democrats call to rein in AI buildout after midterms sweep: 'National data center moratorium now'
After Democrats' midterm wins on Tuesday, Sen. Bernie Sanders called for a national data center moratorium, pointing to local referendums where voters approved restrictions on data centers. A CNBC Voter Poll found 56% of voters said AI and data centers were a crucial or major factor in their vote, and 65% of those voters backed a Democratic congressional candidate. Gina Hinojosa, who ousted Gov. Greg Abbott in Texas, pledged a moratorium on all data center approvals until the legislature passes protective laws. Chip stocks led the sell-off, with the iShares Semiconductor ETF (SOXX) tumbling nearly 9% on Tuesday, Nvidia down 8% and Advanced Micro Devices down more than 14%.
- 3 Stocks Riding The Shift Away From Search Ads
The article reviews three stocks that could benefit from, or be hurt by, a shift away from search advertising after signs of weakness in Alphabet's search business. Nexxen International, a video and CTV ad platform with about $383 million in revenue and a $486 million market cap, is one. AppLovin, an AI-powered mobile ad platform with about US$6.8b in advertising revenue and a market cap of US$82.2b, saw its stock fall nearly 50% while an SEC investigation was open. The SEC dropped that case in August 2026 with no findings of wrongdoing. MNTN, a self-serve Connected TV ad platform with about $313 million in revenue and a $728 million market cap, is the third, with customer acquisition timing that may vary by quarter.
- Is Newmont (NEM) Still Undervalued On Stronger Q3 Earnings And Higher Guidance?
Newmont (NEM) rose 9.9% in one day to $118.11 after a third-quarter report showing higher sales and net income, lower reported costs and upgraded full-year production guidance. The stock is up 16.69% year to date, with a 1-year total shareholder return of 46.05% and a 3-year return of about 2.6x, supported by firmer gold prices, improved guidance and a maintained dividend. The article notes bulls cite stronger earnings and guidance, while bears argue the recent jump prices in too much. One widely followed narrative puts fair value at $137.07 per share, above the $118.11 close. Cited risks include lower-grade ore at key sites and higher sustaining capex that could squeeze future free cash flow.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.