Marvell Technology to Acquire Lumentum in Landmark $115 Billion AI Deal
Marvell Technology is acquiring optical component maker Lumentum in a $115 billion mega-deal, intensifying competition with Broadcom and marking one of the largest corporate transactions of 2026 to capture surging global AI infrastructure demand.
Chipmaker Marvell Technology is acquiring optical component manufacturer Lumentum in a deal valued at $115 billion, according to reports. This custom chip maker is intensifying competition with its larger rival Broadcom amid a wave of AI investments, marking one of the biggest corporate transactions of 2026 and a bold bet on the soaring demand for artificial intelligence infrastructure.
Marvell executives believe that massive tech investments in AI infrastructure will continue for the foreseeable future, with demand for high-speed data transmission optical components consistently outpacing supply. Earlier this year, Nvidia invested approximately $2 billion in each of the two companies, Marvell and Lumentum. Just three years ago, Marvell was a lesser-known chip producer, but its market capitalization has since surged past $170 billion, fueled by custom AI chip development for giants like Amazon and advanced data center networking technologies.
The acquisition is also expected to strengthen Marvell's position against Broadcom, a long-standing partner of Google in custom silicon development. In August, Marvell secured a landmark agreement to supply chips alongside Google's AI processors, with potential sales reaching $120 billion by fiscal 2033, alongside granting Google the right to acquire a $12.2 billion stake in Marvell. Meanwhile, Lumentum stands to benefit from proposed US restrictions on imports of Chinese optical transceivers, which could redirect substantial demand toward domestic suppliers.
Under the agreement terms, Marvell will pay $1,132 per share, representing a 23.9% premium over Lumentum's closing price on October 28. The transaction has been unanimously approved by both boards of directors and is expected to close in the first half of 2028.
