Marvell acquires Lumentum in $115 billion push to dominate AI connectivity

Marvell acquires Lumentum in $115 billion push to dominate AI connectivity

The deal combines Marvell's custom chip and networking expertise with Lumentum's optical technology, targeting a market the companies say could reach $550 billion.

Marvell Technology is acquiring optical components maker Lumentum in an all-stock transaction valued at $115 billion, including debt, as the custom chipmaker takes on larger rival Broadcom in the race to capitalize on the AI spending boom.

The deal, announced Monday, is one of the largest technology transactions of 2026 and among the boldest bets yet on the AI infrastructure buildout that chip executives expect to drive industry demand for years to come.

The acquisition comes as the AI spending boom faces a growing reality check. Investors are increasingly questioning whether the massive investments can be sustained amid tightening margins and slowing cash flow, triggering a selloff in chip stocks.

“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” said Marvell CEO Matt Murphy, who will remain chairman and CEO of the combined company.

“We i...