Marvell nears $83B deal for Nvidia-backed optics maker Lumentum
What's the deal? Marvell Technology is in advanced talks to buy data center optics maker Lumentum Holdings, which carries a market value of about $83 billion, Bloomberg reported. A transaction could be announced as soon as next week, though no final agreement has been reached.
Who's who? Marvell, worth around $221 billion, designs chips and interconnect hardware for data centers. Lumentum, backed by Nvidia, makes optical components used to link AI servers. Both companies are based in Northern California.
Why now? The talks fit Marvell's push into AI optical connectivity, following its acquisition of Celestial AI in February and optical startup Polariton in April. Demand for optical parts is acute: Lumentum's chief executive officer said key products are sold out through early 2029, with customers already booking further ahead.
What's the endgame? An $83 billion tie-up would give Marvell access to scarce optical components and broaden its interconnect portfolio. It would rank among the 10 largest tech and telecom deals ever and dwarf Marvell's recent purchases.
What could go wrong? A deal that size would raise substantial financing and integration questions. Marvell shares fell 9.3% to $228.31 in after-hours trading on the report, while Lumentum jumped 13% to $1,040.00.
The signal: The talks underscore how AI demand is reshaping the chip and optics sectors, pushing suppliers to consolidate to secure components in short supply. With Nvidia backing Lumentum and Marvell already assembling optical assets, control over data center interconnects is becoming a prize worth tens of billions.
Image credit: Robert Scoble
Read more: investing.com, Bloomberg
