Marvell Technology to acquire Lumentum.
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marvel technology announced on Monday that it would acquire an optical components manufacturer. lumen Meet growing connectivity demands by building artificial intelligence infrastructure.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating a once-in-a-generation opportunity,” Marvell Chairman and CEO Matt Murphy said in a release. “The companies that act first and help define this transition will set the standards for decades to come.”
The partnership is a non-cash, fixed-ratio transaction, so its value is determined by the price of Marvell stock. The company said in a release that the transaction implies an enterprise value of $115 billion for Lumentum.
Through the acquisition, Marvell said it will be able to combine its electrical and optical technologies to meet the accelerating and changing demand for AI connectivity across regions and systems. Companies are increasingly relying on optical connectivity to power together chips used to run and train large language models.
Under the agreement, Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share. The deal is expected to close in the first half of 2028.
Marvell’s acquisition represents one of the most important bets on AI in 2026, and comes despite recent concerns about the long-term sustainability of infrastructure spending.
This isn’t the first time the company has bet on the growth of AI. This year, the company signed a multibillion-dollar deal with Celestial AI, a startup focused on optical interconnect technology.
Marvell has more than tripled in market value over the past three years, driven by continued enthusiasm for AI. Lumentum’s stock price more than doubled in 2026 alone.
Marvell shares were down 3% and Lumentum shares were down about 4% before the bell.
