Marvell agrees to buy Lumentum in all-stock deal for AI optics

· Tech · United States

Marvell Technology agreed on Monday to acquire laser maker Lumentum in an all-stock deal valued at roughly $80 billion to about $115 billion depending on how it is counted, one of the largest acquisitions in tech history. The deal gives Marvell its own supply of indium phosphide lasers, among the scarcest components in AI data center networking, and makes it one of the few suppliers spanning both the electrical and optical sides of the link. Marvell designs chips for data centers, networking and storage, and the AI investment boom has sharply lifted Lumentum's value; DigiTimes noted the price works out to about 33 times forward earnings, with the move aimed at matching Broadcom. Both companies share Nvidia as a strategic investor.

Why it matters：Optical components have become a bottleneck in scaling AI data centers, so a chip designer buying a laser supplier concentrates a critical piece of the supply chain and sets up a direct contest with Broadcom.

Key points

  • The all-stock structure ties the price to Marvell's share valuation rather than cash.
  • Lumentum's indium phosphide lasers are described as scarce components for AI networking.
  • DigiTimes pegs the offer at about 33 times Lumentum's forward earnings.

Sources (original reporting)

More stories from this day