Marvell to Buy Lumentum in $115 Billion All-Stock Deal

The Tip Desk · November 2, 2026 · 2 min read

The semiconductor maker will pay 4.500 shares of Marvell stock for each Lumentum share, a 23.9% premium to Oct. 28 closes, to fuse electrical and optical connectivity for AI infrastructure.

Marvell Technology, Inc. (MRVL) agreed to acquire Lumentum Holdings Inc. (LITE) in an all-stock transaction that values the optical-technology company at an implied enterprise value of $115 billion.

The semiconductor maker will issue a fixed 4.500 shares of Marvell common stock for each share of Lumentum common stock. The companies said the ratio represents a premium of approximately 23.9% based on each company’s unaffected closing share price as of October 28, 2026, the last trading day before market speculation regarding a potential transaction began.

Marvell said the combination brings together complementary electrical and optical technologies to address increasingly complex connectivity requirements across next-generation AI infrastructure, describing the two as among the fastest-growing enablers of AI.

“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” said Matt Murphy, Chairman and CEO of Marvell. “The companies that move first and help define this transition will set the standard for decades to come.”

The move extends a connectivity strategy Marvell has already pursued through smaller optical deals. In December 2025 it agreed to acquire Celestial AI, a Photonic Fabric platform for scale-up optical interconnect, saying the step would expand its addressable market in optical interconnects. In March 2026 it also joined NVIDIA’s NVLink Fusion ecosystem and said the two companies would collaborate on silicon photonics. Lumentum, for its part, had already locked in a multi-year NVIDIA partnership in March 2026 that included a $2 billion investment and a multi-billion purchase commitment for advanced laser components.

Lumentum reported fiscal first-quarter net revenue of $1.26 billion, up 136.5% from a year earlier, with non-GAAP operating margin of 42.3%. President and CEO Michael Hurlston said pump lasers and optical circuit switches were the leading contributors, that the company secured a second major NPO/CPO win backed by purchase commitments exceeding $5 billion, and that optical switching demand visibility had expanded into a multi-billion-dollar annual revenue stream. The company forecast second-quarter fiscal 2027 revenue of $1.575 billion to $1.625 billion and non-GAAP operating margin of 45.0% to 46.0%.

The deal is expected to close in the first half of calendar year 2028, subject to approval by Marvell and Lumentum stockholders, receipt of regulatory approvals and other customary closing conditions.