Marvell in Advanced Talks to Acquire Optical Component Maker Lumentum in AI Megadeal

Marvell Technology is in advanced talks to acquire Lumentum Holdings, the optical component supplier to AI data centers, in a deal that could be announced as soon as next week, according to a Bloomberg report published October 28. The acquisition would combine Marvell, valued at approximately $221 billion, with Lumentum, valued at approximately $83 billion, making it one of the largest AI-related hardware deals on record.

Markets responded sharply to the news. Lumentum shares surged as much as 17 percent on the report, while Marvell shares fell roughly 10 percent, a typical pattern when an acquirer faces a large premium outlay. Lumentum manufactures optical components used inside AI data centers, and the deal would give Marvell direct control over that hardware supply chain as demand for high-speed optical interconnects accelerates.