Marvell targets AI data center boom with $115B laser push

Marvell Technology is making a major push into AI infrastructure by acquiring Lumentum in a $115 billion stock-and-debt deal.

The acquisition will expand Marvell’s role in building the technology that powers data centers and put it in a stronger position to challenge Broadcom.

Lumentum develops laser technology and optical hardware to move data between chips and servers.

The two companies have strong ties to Nvidia, which invested $2 billion in each earlier this year. Their combination will bring chipmaking and optical networking expertise under one roof.

The deal ranks second in tech history by value, behind the SpaceX–xAI merger.

The acquisition expands Marvell’s AI footprint, but its price tag has made investors uneasy amid fears of an AI spending bubble.

Investors reacted cautiously. Marvell shares dropped more than 10%, while Lumentum lost over 15% on Monday.

The deal represents a significant financial commitment for Marvell, with Lumentum shareholders set to own about 33% of the combined business. The transaction could close in the first half of 2028.