Updated Version 2 - According to Bloomberg, Marvell is in advanced talks to acquire Lumentum.

Supplemented with stock prices and details

Reuters, October 28 - According to a Bloomberg report on Wednesday citing sources familiar with the matter, Marvell Technology (MRVL.O) is in advanced negotiations over an acquisition of photonics manufacturer Lumentum Holdings (LITE.O).

Following the report’s release, Lumentum’s stock price jumped about 11% in after-hours trading, while Marvell’s stock price dropped more than 8%.

The report stated that the deal could be announced as early as next week and added that the related discussions are still confidential at this stage.

Marvell and Lumentum have not yet responded to Reuters’ requests for comment.

Lumentum produces optical components for communications networks and data centers. As AI workloads drive demand for faster data transmission, these sectors are attracting increased attention from investors.

As of the latest quarter, Marvell held approximately $3.92 billion in cash and cash equivalents.

This potential acquisition would further expand Marvell’s presence in AI-related infrastructure. Thanks to robust demand for its custom AI chips and networking hardware that connects data center servers and AI systems, the company has been one of the biggest beneficiaries of the AI boom.

Earlier this month, Marvell raised its fiscal 2028 revenue forecast (link) from $15 billion to $20 billion, citing strong demand for custom AI chips and networking products for data centers.

(To facilitate non-English speakers, Reuters has automated translation of its reports into several other languages. As automated translation may be inaccurate or lack needed context, Reuters does not guarantee the accuracy of these texts and provides them solely for readers' convenience. Reuters accepts no responsibility for any damages or losses arising from the use of automated translation features.)