Marvell to buy Lumentum in $115 billion deal in AI data-center bet
The acquisition expands Marvell’s photonics and interconnect business as AI data-center demand drives a 65% annual growth forecast through 2030, the company said.
- On Monday, Marvell Technology announced it is buying optical components maker Lumentum in a $115 billion all-stock deal, aiming to challenge rival Broadcom and capitalize on the AI spending boom.
- "Infrastructure is undergoing a fundamental architectural shift toward optical connectivity," said Marvell CEO Matt Murphy, who will remain chairman and CEO of the combined company. The deal expands the company's total addressable market to $550 billion.
- Big Tech's AI spending boom drives demand for optical components used to move data at high speeds. Reflecting this confidence, AI chip giant Nvidia invested $2 billion each in Marvell and Lumentum earlier this year.
- To challenge Broadcom, the deal integrates Lumentum into Marvell's portfolio. Since talks were reported late last month, Lumentum's shares have fallen about 8% and Marvell about 22%, as a broad-based chip selloff accelerated following Intel's weak forecast.
- Marvell expects the interconnect market to grow 65% a year to $65 billion by 2030, fueling long-term demand. The transaction, unanimously approved by both boards, is expected to close in the first half of calendar 2028.
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Marvell Technology announced on Monday (2) an agreement to acquire the manufacturer of Lummentum optical components for $115 billion, in a transaction entirely in shares, including debts. With the operation, the manufacturer of custom chips intensifies competition with the biggest competitor Broadcom, amidst the expansion of investments in artificial intelligence (IA). The business, announced today, is one of the largest in 2026 and is among the…
Marvell Lumentum acquisition: $115bn deal joins AI chips and lasers
Marvell Technology has agreed to buy Lumentum in an all-stock deal. Lumentum makes lasers and other optical parts for AI data centres. The two companies valued Lumentum at $115bn, including debt, when they announced the deal on Monday. Lumentum shareholders will get 4.5 Marvell shares for each share they own, the companies said in a […] This story continues at The Next Web
Marvell to acquire Lumentum in $115 billion all-stock deal, steps up challenge to Broadcom amid AI boom
The deal is among the biggest corporate acquisitions of 2026 and reflects growing confidence among chipmakers that Big Tech's AI spending boom will sustain demand.
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