Marvell Technology will buy Lumentum for $115 billion in shares

Marvell Technology, a chip maker, said on Monday that it will buy Lumentum, which makes optical parts. These parts use light to connect the chips that train and operate large language models. Marvell puts an enterprise value of $115 billion on Lumentum. Lumentum holders get 4.5 Marvell shares for each Lumentum share, and no cash.

What the deal is

Marvell says it can use electrical and optical technology together for AI systems. CEO Matt Murphy says that this comes one time in a generation. He says that the companies that move first will set the standard.

The deal will close in the first half of 2028, Marvell says.

The numbers

The ratio is set, and the value follows the Marvell share price. Lumentum stock more than doubled in 2026. Before the market opened on Monday, Marvell shares fell 3% and Lumentum shares fell about 4%.

What is not known

Marvell gave no sales or profit figures for Lumentum and no savings from the deal. The report also says that some persons are not sure how long AI spending can continue.

Insight: Marvell buys a second optical connection business in a year

In 2026, Marvell also closed a multibillion deal for Celestial AI, a company for optical connections. At this time it pays for Lumentum with shares, after its market value went up. This reads as a race to own the optical connection in AI systems, with shares as the price. Monitor if rivals buy optical firms next. Buyers of AI hardware can face a small group of large suppliers.