Marvell Technology in advanced talks to buy optics maker Lumentum, source says (updated)

Lumentum Holdings

28/10/2026 21:34

Changes sourcing throughout and adds details
By Milana Vinn
Oct 28 (Reuters) - Marvell Technology MRVL.O is in advanced talks to buy data-center optics maker Lumentum Holdings LITE.O, with a deal potentially set to be announced as soon as next week, a source familiar with the matter told Reuters on Wednesday. 

        Marvell and Lumentum did not immediately respond to Reuters requests for comment.
Lumentum makes optical components used in communications networks and data centers, areas that have attracted growing investor interest as AI workloads drive demand for faster data transmission.
Marvell has emerged as one of the biggest beneficiaries of the AI spending boom, with its shares nearly tripling this year as demand for its custom AI chips and networking products surged.
The potential acquisition would further Marvell's push into optical technologies used in AI infrastructure, a strategy that Bernstein analysts said was reinforced by the company's acquisition of photonics firm Celestial AI in a $3.25 billion deal announced late last year.
Marvell raised its fiscal 2028 revenue forecast earlier this month to $20 billion from $15 billion, citing strong demand for its custom AI chips and networking products used in data centers.
While Marvell had about $3.92 billion in cash and cash equivalents as of its latest quarter, Bernstein analysts said an acquisition of that size would likely require additional financing and could present integration challenges.
Shares of Lumentum, which has a market value of roughly $83 billion, rose about 9% in extended trading following news of the discussions, first reported by Bloomberg News. Marvell shares fell more than 8%.

        

 (Reporting by Milana Vinn in New York and Prathik Jayaprakash in Bengaluru; additional reporting by Chandni Shah; Editing by Pooja Desai and Sherry Jacob-Phillips)
 ((Prathik.Jayaprakash@thomsonreuters.com; +91 9916364306))