Marvell Technology to buy Lumentum in $115 billion AI connectivity deal

November 2, 2026 / 9:00 AM EST / CBS News

Marvell Technology announced Monday that it would acquire Lumentum Holdings in a deal valued at $115 billion, one of the biggest tech industry deals ever.

Marvell said the purchase of Lumentum, which manufactures lasers, circuit switches and other products used for data centers, would make the enlarged company a "category leader in AI connectivity." Marvell makes data infrastructure semiconductor products.

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

Nvidia earlier this year said it was buying a $2 billion stake in Lumentum, according to Bloomberg.

Marvell, despite the aggressive pullback in AI stocks last week, believes the investment is still warranted. Markets appear less certain. Marvell shares slid more than 1% before the opening bell, and Lumentum fell almost 3% after the announcement of the all-stock deal.

— This is a developing story and will be updated

The Associated Press contributed to this report.

Original source: https://www.cbsnews.com/moneywatch/