Marvell Technology to buy Lumentum.<\/p>\n
Getty Images<\/p>\n
Marvell Technology<\/a> on Monday said it will buy optical<\/a> components maker Lumentum<\/a> to address growing connectivity demands from the artificial intelligence<\/a> infrastructure buildout.<\/p>\n “AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” said Marvell Chairman and CEO Matt Murphy in a release. “The companies that move first and help define this transition will set the standard for decades to come.”<\/p>\n Since the tie-up is a fixed ratio deal with no cash, the value will depend on the price of Marvell shares. The company said the transaction has an implied enterprise value of $115 billion for Lumentum, in a release.<\/p>\n Through the acquisition, Marvell said it can combine electrical and optical technologies to meet accelerating and shifting AI connectivity demands<\/a> across regions and systems. Companies are increasingly relying on optical connections to piece together chips used to run and train large language models.<\/p>\n Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share under the agreement. The deal is expected to close during the first half of 2028.<\/p>\n Marvell’s takeover marks one of the most significant bets on AI in 2026 and comes despite recent concerns over the long-term sustainability of infrastructure spending.<\/p>\n This isn’t the company’s first bet on AI growth. This year, the company closed a multibillion-dollar deal<\/a> for Celestial AI, a startup focused on optical interconnectivity technology.<\/p>\n Marvell has seen its market value more than triple over the last three years, buoyed by unrelenting AI enthusiasm. Lumentum’s stock has more than doubled in 2026 alone.<\/p>\n Marvell shares slumped 3%, while Lumentum’s stock declined about 4% before the bell. <\/p>\n