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Lumentum shares rise, Marvell falls on report of possible multibillion-dollar merger
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Marvell Technology shares fell 12% on Thursday following reports that the AI chipmaker is in advanced talks to acquire optical components maker Lumentum, according to Bloomberg. Lumentum shares initially surged as much as 5% before paring gains. An agreement could be announced as soon as next week. Lumentum has a market value of roughly $83 billion, compared with Marvell's approximately $221 billion. The acquisition would give Marvell greater access to optical technologies and manufacturing capacity, which have become critical bottlenecks in the AI infrastructure build-out. Lumentum makes lasers and optical components for faster connections, while Marvell designs high-speed infrastructure and custom chips that enable AI computers to communicate. Marvell shares are up more than 190% year to date, and Lumentum shares have rallied 140%.
Source report
By Ines Ferré, Senior Business Reporter Thu, October 29, 2026 at 6:59 AM PDT — 1 min read
What Happened
Marvell Technology (MRVL) stock dropped 12% on Thursday on reports that the AI chipmaker is in advanced talks to purchase optical parts maker Lumentum (LITE). Shares of Lumentum surged as much as 5% before trimming gains.
What's Behind the Move
The potential multibillion-dollar mega deal between the semiconductor designer and Lumentum was first reported by Bloomberg, citing people familiar with the matter.
An agreement could be announced as soon as next week. Lumentum has a market value of about $83 billion, compared with Marvell's roughly $221 billion.
What Else You Need to Know
The acquisition would give Marvell greater access to optical technologies and manufacturing capacity, which have become critical bottlenecks of the AI infrastructure build-out.
Lumentum makes lasers and other optical components as increasingly powerful AI systems require faster connections. Marvell, which competes with Broadcom (AVGO), designs high-speed infrastructure and custom chips that enable AI computers to communicate with one another.
Earlier this year, Marvell stock rallied sharply after AI chip heavyweight Nvidia (NVDA) CEO Jensen Huang described the chip designer as "the next trillion-dollar company."
The company joined the S&P 500 (^GSPC) index in June. Marvell shares are up more than 190% year to date. Lumentum shares have rallied 140%.
Related Ticker Performance
| Ticker | Change | |--------|--------| | LITE | -8.57% | | NVDA | -4.22% | | MRVL | -10.05% | | AVGO | -5.48% |
Lumentum (LITE) Price Snapshot
- Close: 840.70, down 78.83 (-8.57%) — October 30 at 4:00:01 PM EDT
- After hours: 845.00, up 4.30 (+0.51%) — October 30 at 7:59:12 PM EDT
Ines Ferre is a senior business reporter for Yahoo Finance.
Source
"site:finance.yahoo.com" - Google NewsWestern
Part of this Story
Marvell in advanced talks to acquire Lumentum in AI optics megadeal