Key facts
- Marvell agreed to buy Lumentum in a deal valued at $115 billion, Reuters reported.
- Nvidia invested $2 billion each in Marvell and Lumentum earlier in 2026, according to Reuters.
- Marvell's market value has risen above $170 billion on custom AI chip work for customers including Amazon.
- Lumentum shares fell about 8% and Marvell about 22% since the talks were first reported.
- Marvell's largest prior purchase was the $10 billion buyout of Inphi in 2021.
Marvell Technology agreed to buy optical-components maker Lumentum in a deal valued at $115 billion, the company said in a report by Reuters dated November 2. The deal, announced on a Monday, is one of the largest of 2026 and a bet that Big Tech spending on artificial intelligence will keep demand for optical components ahead of supply.
Nvidia invested $2 billion each in Marvell and Lumentum earlier in 2026. Marvell's market value has risen above $170 billion as it helps companies including Amazon develop custom AI chips and data-center networking. The purchase of Lumentum, roughly half Marvell's size, adds scale in its competition with Broadcom, which is Alphabet-owned Google's main custom-chip partner.
Marvell signed a deal in August to supply chips alongside Google's AI processors, worth up to $120 billion in sales through fiscal 2033, with Google entitled to buy a $12.2 billion stake. Marvell's annual revenue rose from $3 billion in fiscal 2021 to $8.2 billion in fiscal 2026.
Since the talks were first reported late last month, Lumentum shares fell about 8% and Marvell about 22% as a chip selloff accelerated after Intel's weak forecast. Lumentum competes with US-listed Coherent and China's Zhongji Innolight and could gain from a proposed US ban on new Chinese optical transceivers. Marvell closed a $3.5 billion purchase of Celestial AI in February. Its largest prior deal was the $10 billion buyout of Inphi in 2021.