Marvell Technology stock weighs reported Lumentum takeover talks

Marvell Technology is weighing a potential expansion into optical infrastructure. Reuters reported on Wednesday, October 28, that the chipmaker was in advanced discussions to buy data-center optics maker Lumentum Holdings, citing a Bloomberg News report and people familiar with the matter.

The discussions were still private, and Reuters said a transaction could be announced as soon as the following week. The report did not provide deal terms, and representatives for Marvell and Lumentum did not immediately respond to requests for comment. That leaves the potential purchase at an early, uncertain stage rather than presenting investors with a signed agreement.

Optics strengthens the AI push

Lumentum makes optical components used in communications networks and data centers. Those products have gained strategic importance as artificial intelligence workloads increase demand for faster data transmission. Owning more of that supply chain could give Marvell greater control over components that support its custom AI chips and networking products.

The reported talks would extend a strategy Marvell has already pursued through its acquisition of photonics company Celestial AI. Reuters said that deal was announced late last year at a price of 3.25 billion US dollars. Marvell also raised its fiscal 2028 revenue forecast earlier in October to 20 billion US dollars from 15 billion US dollars, citing strong demand for custom AI chips and networking products used in data centers.

Funding remains the central risk

Marvell had about 3.92 billion US dollars in cash and cash equivalents as of its latest quarter, according to Reuters. Bernstein analysts said a deal of the potential scale would likely be impossible to fund entirely with cash, putting financing, dilution and integration at the center of the investment case.

The immediate market response highlighted that tension. Reuters reported that Lumentum shares rose about 11 percent in extended trading after the report, valuing the company at roughly 91 billion US dollars, while Marvell shares fell more than 8 percent. The move reflected the different positions of a potential buyer and target, but it does not establish that the talks will produce a transaction.

Marvell Technology stock traded at 179.40 euros on Lang & Schwarz at 11:13 CET on Monday, November 2. The real-time quote of Marvell Technology stock is available separately.

For investors, the next material catalyst is any formal announcement that sets a purchase price, financing structure and ownership terms. Until then, the strategic case rests on securing optical capacity for AI infrastructure, while the financial case depends on whether Marvell can add that capacity without excessive dilution or costly integration.

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