Marvell to Buy Lumentum in $115 Billion Deal: What to Know

Last updated: Monday, Nov. 2, 2026, 10:05 a.m. ET. This is a developing story.

Marvell Technology is making the biggest bet yet on the plumbing behind artificial intelligence. The chipmaker said Monday morning it will buy Lumentum Holdings, a maker of lasers and optical parts for data centers, in an all-stock deal valued at $115 billion.

CBS News called it one of the biggest tech industry deals ever. CNBC reported the same $115 billion figure, and so did Reuters in its headline. It lands a few days after AI stocks took a beating, and Wall Street's first reaction was cool.

Marvell to buy Lumentum: the deal terms

Here's what has been reported so far:

• Price: Valued at $115 billion, paid entirely in Marvell stock.
• Exchange ratio: Lumentum shareholders get 4.5 Marvell shares for each Lumentum share, CNBC reported.
• Timing: The companies expect to close during the first half of 2028.

Because no cash changes hands, what a Lumentum share is worth in the deal will rise and fall with Marvell's stock between now and closing. The Wall Street Journal's headline gave a figure of $80 billion. The companies' announcement says the $115 billion is Lumentum's implied enterprise value, which includes debt, worked out from both companies' closing prices on Oct. 28, before talk of a deal moved the stocks. That came to about $1,132 per Lumentum share, a 23.9% premium. The Journal's headline didn't say how it got to $80 billion, so we're sticking with the $115 billion figure used by the companies, CBS, CNBC and Reuters.

We haven't seen details yet on who will run the combined company beyond Marvell CEO Matt Murphy, how much of it each side's shareholders will own, or what regulators in the U.S. and abroad will need to sign off on. We'll add those as they're confirmed.

Why Marvell wants Lumentum

AI chips don't work alone. Training a large model means wiring thousands of processors together, and companies are leaning more and more on optical links, light instead of copper, to move data between them fast enough. CNBC described that shift as the core reason for the deal.

Marvell designs data infrastructure chips. Lumentum makes the lasers, circuit switches and other optical gear that sit at the other end of those connections. Put them together, Marvell argues, and you get one company that can sell both the electrical and optical sides. It said the combined business would be a "category leader in AI connectivity."

"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," Murphy said in a statement quoted by CBS News and CNBC. "The companies that move first and help define this transition will set the standard for decades to come."

It isn't Marvell's first move in this direction. Earlier this year it closed a multibillion-dollar purchase of Celestial AI, a startup working on optical interconnect technology, CNBC noted.

Lumentum also has a famous backer. Nvidia said earlier this year it was buying a $2 billion stake in the company, according to Bloomberg, as cited by CBS.

How Marvell and Lumentum stock reacted

Not well. Marvell shares slid more than 1% before the opening bell and Lumentum fell almost 3%, CBS News reported. The selling picked up once regular trading began at 9:30 a.m. ET. At 10:05 a.m. ET, Marvell was at $183.32, down 6.7% from Friday's close of $196.40, and Lumentum was at $751.89, down 10.6% from $840.70, according to MarketWatch quotes.

Because the deal is paid in stock, Marvell's drop also lowers what Lumentum holders would get. At those prices, 4.5 Marvell shares are worth about $825, well below the roughly $1,132 per share the companies cited based on Oct. 28 prices.

Both stocks have had a huge run. Marvell's market value has more than tripled over the last three years, and Lumentum's stock has more than doubled in 2026 alone, according to CNBC.

The timing is awkward. Big AI and chip stocks just had a rough October as investors started asking when all that spending pays off. CBS put it plainly: Marvell thinks the investment is still worth it, and the market seems less certain. For the backdrop, see our explainer on why tech stocks are down and the week ahead.

What happens next

A deal this large won't close quickly. The companies are pointing to the first half of 2028, which leaves well over a year for shareholder votes and antitrust reviews. Expect regulators to look closely, since both companies sell into the same AI data-center buyers.

For now, Lumentum holders don't need to do anything. Nothing changes in their accounts until the deal closes.

We'll update this story when the companies release fuller terms, when the stocks settle, or when analysts and regulators weigh in. If you're following the AI trade this week, our Apple earnings preview covers another big report on the calendar.