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.
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mergers and acquisitionsMarvellartificial intelligencesemiconductors
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Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 10/30/2026 | 204.81 |
| Change that session | -4.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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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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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.
- 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.
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