Marvell in Advanced Talks to Acquire Lumentum; MRVL Falls 14%, LITE Rises

Marvell Technology (MRVL) is in advanced talks to acquire optical components maker Lumentum (LITE), with an announcement possible as soon as next week, according to Bloomberg. Marvell shares fell more than 14% in recent trading, while Lumentum rose slightly less than 1%. Neither company responded to requests for comment. A deal would give chip designer Marvell more direct access to a major laser supplier it already buys from, and would combine two AI investor favorites whose sales and stocks have soared this year. Lumentum carried a market capitalization of about $82.8 billion as of the prior close, while Marvell's stood at just over $220 billion. Both companies received $2 billion investments from Nvidia (NVDA) earlier this year. Marvell recently raised long-term sales targets on data center demand, and Lumentum's CEO said earlier this month that its optical networking production capacity is sold out through early 2029. Through Wednesday's close, Marvell shares were up roughly 200% this year and Lumentum 150%.