Lumentum

Semiconductors · AI Infrastructure · Optical Networking

Acquisition

Marvell to acquire Lumentum for $115B in all-stock AI optics deal

Data centers are hitting copper's physical limits, forcing chipmakers to fuse electrical and optical engineering into one stack.

• Marvell agreed to acquire optical-components maker Lumentum in an all-stock deal, with Lumentum shareholders receiving 4.5 Marvell shares per share, implying a $115 billion enterprise value and a 23.9% premium.
• Lumentum makes optical components like pump lasers and optical circuit switches that move data at high speed inside AI data centers, while Marvell supplies custom silicon and networking chips for hyperscalers.
• Marvell shareholders will hold about 67% of the combined company and Lumentum holders 33%; both boards approved the deal unanimously and the transaction is expected to close in the first half of 2028.
• The companies project more than $1 billion in annual run-rate cost synergies and say the combination expands their total addressable market to $550 billion.
• Nvidia invested $2 billion each in Marvell and Lumentum earlier in 2026, underscoring how deeply AI chipmakers are now intertwined with the optical supply chain.
• Lumentum shares fell about 8% and Marvell about 22% during the week of deal speculation as a broader chip selloff followed Intel's weak forecast, before both stocks slipped further on announcement day.
• The deal signals that AI data centers are outgrowing copper wiring, pushing chipmakers to fuse electrical and optical engineering into a single supply chain that could reshape competition with Broadcom.