Marvell Technology said Monday it will acquire Lumentum Holdings in an all-stock deal valued at $115 billion, one of the largest technology deals on record, as the custom chipmaker bets on an AI-driven shift toward optical connectivity in data centers.
Marvell, which makes data-infrastructure semiconductors, said the purchase of Lumentum, a manufacturer of lasers, circuit switches and other data-center products, would make the enlarged company a "category leader in AI connectivity." The deal is one of the biggest of 2026 and among the boldest corporate bets yet on an AI boom that chip executives expect to underpin industry demand for years.
"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," Marvell CEO Matt Murphy said in a statement. "The companies that move first and help define this transition will set the standard for decades to come."
The acquisition is Marvell's largest since its $10 billion buyout of Inphi in 2021. The company's market value has surged to more than $170 billion, helped by work with tech giants such as Amazon on custom AI chips and networking technology. In February it closed a $3.5 billion purchase of Celestial AI, and in August it signed a deal to supply chips alongside Google's AI processors worth up to $120 billion in sales through fiscal 2033, with the right for Google to buy a $12.2 billion stake.
CNBC reported the deal could add muscle to Marvell's race with rival Broadcom, which has long been Alphabet-owned Google's main custom-chip partner and offers a broader menu of AI data-center hardware. Nvidia invested $2 billion each in Marvell and Lumentum earlier this year, the network reported.
Markets appeared less certain. Marvell shares slid more than 1% before the opening bell and Lumentum fell almost 3% after the announcement. Since the talks were first reported late last month, Marvell shares have fallen about 22% and Lumentum about 8% amid a broad chip selloff that accelerated after Intel's weak forecast.
Lumentum, which competes with US-listed Coherent and China's Zhongji Innolight, could benefit from a proposed US ban on new Chinese optical transceivers that could shift demand toward domestic suppliers, CNBC reported.
SITUATION DETECTED: Marvell to acquire Lumentum for $115 billion in an all-stock deal announced this morning as it bets on AI data-center optical connectivity.
The $115 billion deal is one of the largest technology acquisitions ever and signals that major chipmakers expect AI-driven demand for high-speed optical components to keep growing.
It sharpens Marvell's competition with Broadcom for custom AI chip and data-center networking business.
The muted market reaction shows investors are weighing the deal against a recent selloff in AI stocks.
Background
Marvell is a US semiconductor company that has emerged as a major supplier of custom AI chips and data-center networking hardware. Lumentum makes optical components, including lasers and switches, used to move data through AI data centers at high speed. The deal continues a wave of consolidation as chipmakers position themselves for the AI infrastructure buildout.
Key Perspectives
Marvell CEO Matt Murphy: says AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, a once-in-a-generation opportunity, and that the combined company will be a "category leader in AI connectivity."
Investors: appear less certain, with Marvell shares down more than 1% and Lumentum down almost 3% after the announcement, following larger declines since the talks were reported.
What to Watch
Whether the proposed US ban on new Chinese optical transceivers takes effect and shifts demand to Lumentum.
How the recent AI stock selloff affects the all-stock deal's value and reception.
Whether the combination strengthens Marvell's position against Broadcom in custom AI chips and data-center networking.
12 claims in this story checked against 2 sources: 12 supported.
Show each claim
SupportedMarvell announced it would acquire Lumentum in a deal valued at $115 billion.Moneywatch - CBSNews.com: “Marvell Technology announced Monday that it would acquire Lumentum Holdings in a deal valued at $115 billion”
SupportedThe acquisition is an all-stock deal.Moneywatch - CBSNews.com: “Marvell shares slid more than 1% before the opening bell, and Lumentum fell almost 3% after the announcement of the all-stock deal.”
SupportedMarvell announced the acquisition on Monday.Moneywatch - CBSNews.com: “Marvell Technology announced Monday that it would acquire Lumentum Holdings”
SupportedThe deal is one of the largest technology deals on record.Moneywatch - CBSNews.com: “in a deal valued at $115 billion, one of the biggest tech industry deals ever.”
SupportedMarvell is betting on an AI-driven shift toward optical connectivity in data centers.US Top News and Analysis: “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.”
SupportedMarvell said the deal would make the enlarged company a “category leader in AI connectivity.”Moneywatch - CBSNews.com: “Marvell said the purchase of Lumentum, which manufactures lasers, circuit switches and other products used for data centers, would make the enlarged company a "category leader in AI connectivity."”
SupportedMatt Murphy said: “AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation.”Moneywatch - CBSNews.com: “"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," Marvell CEO Matt Murphy said in a statement .”
SupportedMatt Murphy said: “The companies that move first and help define this transition will set the standard for decades to come.”Moneywatch - CBSNews.com: “"The companies that move first and help define this transition will set the standard for decades to come."”
SupportedThe deal is one of the biggest of 2026 and among the boldest corporate bets yet on an AI boom that chip executives expect to underpin demand for years.US Top News and Analysis: “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.”
SupportedThe acquisition is Marvell’s largest since its $10 billion buyout of Inphi in 2021.US Top News and Analysis: “Marvell's acquisition of Lumentum is its largest purchase since its $10 billion buyout of Inphi in 2021.”
SupportedMarvell’s market value has risen to more than $170 billion, helped by its work with companies such as Amazon on custom AI chips and networking technology.US Top News and Analysis: “its market value has since surged to more than $170 billion, thanks to its role in helping tech giants such as Amazon develop custom AI chips and networking technology for data centers.”
SupportedMarvell’s August deal to supply chips alongside Google’s AI processors is worth up to $120 billion in sales through fiscal 2033 and gives Google the right to buy a $12.2 billion stake.US Top News and Analysis: “signing a deal to supply chips that sit alongside Google's AI processors worth up to $120 billion in sales through fiscal 2033, giving the search giant the right to buy a $12.2 billion stake.”
