The transaction will be executed as an all-stock buyout priced at $1,132 per share, granting Lumentum an equity value of $102.54 billion. Securing these optical assets builds upon Marvell's custom AI processor partnerships with major technology giants, including Amazon and Google. The acquisition also follows separate $2 billion investments made by Nvidia into both companies earlier in the year. Following the official announcement, Marvell's stock rose 2.8% during premarket trading while trading for Lumentum was halted.
Key points
The combined entity expects its total addressable market to expand significantly to appro…: The combined entity expects its total addressable market to expand significantly to approximately $550 billion.
Marvell continues an aggressive optical networking expansion following its earlier $3.5 b…: Marvell continues an aggressive optical networking expansion following its earlier $3.5 billion buyout of Celestial AI.
Lumentum could capture redirected customer demand if a proposed United States ban on Chin…: Lumentum could capture redirected customer demand if a proposed United States ban on Chinese optical transceivers is enacted.
Sources checked by our analysis pipeline: 1
The deal, announced on Monday, is one of the biggest in 2026 and among the boldest corporate bets yet on an AI boom that chip executives expect to underpin industry demand for years.
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By buying Lumentum - a company roughly half its size - Marvell is betting that Big Tech's AI spending boom is here to stay and would keep demand for optical components used to move data at high speeds outstripping supply.
Under the agreement, Marvell will pay $1,132 per share in stock, a 23.9% premium to Lumentum's last unaffected closing price on October 28, before deal talks were first reported.
That gives the deal an equity value of $102.54 billion.
Marvell said the deal would expand the combined company's total addressable market to $550 billion. Its shares were up 2.8% in premarket trading, while trading in shares of Lumentum was halted.
AI chip giant Nvidia invested $2 billion each in Marvell and Lumentum earlier this year.
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