Marvell to Acquire Lumentum for $115 Billion in Stock

Marvell Technology will pay an implied enterprise value of $115 billion for optical components maker Lumentum. The all-stock transaction was announced Monday as a response to rising connectivity needs in artificial intelligence infrastructure.

Chairman and CEO Matt Murphy stated in a release that AI infrastructure is shifting toward optical connectivity. He described the moment as a generational opportunity where early movers set standards for decades.

Shareholders will receive 4.5 Marvell shares for every Lumentum share they hold. Because the deal involves no cash, the final value depends on the price of Marvell stock. The companies expect to close the deal in the first half of 2028.

Marvell aims to merge its electrical and optical technologies to support the growing use of optical connections for large language models. This follows a multibillion-dollar acquisition of Celestial AI earlier in 2026. That startup focused on optical interconnectivity.

Marvell's market value has tripled over the last three years. Lumentum's stock price more than doubled in 2026. Despite strong gains, both stocks fell before the bell on Monday. Marvell shares dropped 3%, and Lumentum shares declined about 4%.

The acquisition stands out amid questions about the sustainability of long-term infrastructure spending. The move positions Marvell to address shifting demands across various regions and systems.