Why Lumentum's stock is suddenly tied to Marvell
Lumentum Holdings (LITE) is back in focus after Marvell Technology agreed to buy the photonics group in an all stock deal that values Lumentum at roughly US$115b, with shareholders receiving 4.5 Marvell shares for each Lumentum share.
Lumentum Holdings has swung sharply lower in the short term, with the share price down about 54% over 30 days and 43% over 90 days. However, the 1-year total shareholder return of 112% and a multi-year gain of more than 11x show the Marvell deal is colliding with what had been powerful long-term momentum.
The recent selloff has tracked Marvell's slump since the all stock tie-up was announced at the end of October. Arbitrage traders and existing holders have reassessed dilution, regulatory risk and the fact that Lumentum's future value is now largely tied to Marvell's share price rather than its latest earnings beat and upbeat revenue guidance for fiscal 2027.
Scan how other AI optics players are reacting to the Lumentum Holdings and Marvell deal by checking our curated list of 53 AI infrastructure stocks.
Lumentum's story has flipped from a powerful multi year climb to a sharp drop tied to Marvell's sto...