Marvell Technology is reportedly in advanced talks to buy Lumentum
MRVL•Marvell Technology is reportedly in advanced talks to buy data-center optics maker Lumentum, with an announcement potentially coming as soon as next week. Lumentum shares rose about 9% in extended trading, while Marvell shares fell more than 8%.
1. Potential acquisition talks
Marvell Technology is in advanced talks to buy Lumentum, a source familiar with the matter said, and a deal could be announced as soon as next week. Lumentum makes optical components used in communications networks and data centers.
2. Financing and strategy
The potential acquisition would advance Marvell’s push into optical technologies used in AI infrastructure. Marvell had $3.92 billion in cash and cash equivalents as of its latest quarter; Bernstein analysts said a deal of that size would likely require additional financing and could present integration challenges.
3. Shares and forecasts
Lumentum, with a market value of roughly $83 billion, rose about 9% in extended trading following reports of the discussions, while Marvell fell more than 8%. Marvell raised its fiscal 2028 revenue forecast earlier this month to $20 billion from $15 billion, citing demand for custom AI chips and networking products used in data centers.
