One of the boldest bets: Marvell will acquire optics developer Lumentum for $115 billion

Marvell, a developer of AI chips, will acquire Lumentum, a manufacturer of optical components for data centers, for $115 billion. This deal will be one of the largest in 2026 and one of the boldest corporate bets on the AI boom, according to Reuters .

Under the terms of the agreement, Marvell will pay $1,132 in its own stock for each share of Lumentum. This is 23.9% higher than the closing price on October 28—the last trading day before the first reports of the negotiations emerged.

By acquiring Lumentum—a company roughly half its size—Marvell

is strengthening its position in the competition against its larger rival, Broadcom, according to CNBC. The deal will increase the combined company’s total addressable market to $550 billion, the chipmaker forecasts. Marvell expects the rapid growth in Big Tech’s AI spending to continue, and demand for optical components for high-speed data transmission to continue to outpace supply, Reuters notes.

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