U.S. stock optical module leader Marvell plans to acquire optical chip leader Lumentum.

October 29 - According to Bloomberg, citing people familiar with the matter, U.S. chip company Marvell Technology (MRVL) is in advanced talks to acquire data center optics manufacturer Lumentum Holdings (LITE). The report said a deal could be announced as early as next week, but the negotiations remain private.

Following the news, Lumentum's shares rose about 11% in after-hours trading, valuing the company at approximately $91 billion based on the price at that time; Marvell fell more than 8% after hours. Lumentum primarily produces optical components used in communications networks and data centers, and the sector has attracted more capital attention as AI computing workloads drive up demand for high-speed data transmission. Marvell's cash and cash equivalents stood at about $3.92 billion in its latest fiscal quarter. Bernstein analysts noted that the potential deal size would test financing and integration capabilities and would be difficult to complete entirely with cash.

Marvell has benefited from demand for custom AI chips and networking products, with its stock nearly quadrupling this year. If completed, the acquisition would further advance its positioning in optical technology for AI infrastructure; the company announced late last year that it would acquire photonics technology company Celestial AI for $3.25 billion. Earlier this month, Marvell also raised its fiscal 2028 revenue forecast from $15 billion to $20 billion, citing strong demand for custom AI chips and data center networking products.