Marvell in talks to buy optics maker Lumentum

Marvell Technology is reportedly in advanced discussions to acquire Lumentum Holdings, a supplier of lasers and optical components used in data centers. Bloomberg reported the talks are far along and said an agreement could be announced as soon as the following week. No purchase price, structure or other transaction terms have been disclosed, and neither company has publicly confirmed a binding deal.

The potential acquisition would connect Marvell’s semiconductor and networking portfolio with Lumentum’s optical and photonic products that support data transmission and connectivity. The scale of the possible transaction is notable, with Lumentum carrying a market value of roughly $83 billion and Marvell valued near $221 billion. Acquiring a business of Lumentum’s size would likely represent a significant financial commitment for Marvell, depending on whether the deal involved cash, stock, or a combination of both.

News of the advanced talks prompted an immediate market response. On October 28, 2026, Lumentum shares rose 15% in after-hours trading after Bloomberg reported the discussions. Over the same period, Marvell shares moved in the opposite direction, falling 11% after hours.

Marvell Technology shares fell about 11% in extended trading and Lumentum’s stock jumped roughly 15%; Coherent, a competitor in optical technology, rose about 4.3% in after-hours trading. Those moves were after-hours and may change as regular trading progresses.

Lumentum makes lasers, photonic integrated circuits and high-speed transceivers that move data between GPUs and other systems inside AI data centers. Its optical and photonic products support high-speed data transmission and connectivity, which are increasingly important as data centers expand to handle artificial intelligence workloads. These components help transfer data efficiently between processors, storage and networking equipment.

Lumentum says its AI optical parts are sold out all the way to 2029, underscoring demand for its technology in advanced data center environments. The company serves major customers including hyperscale cloud operators and networking equipment makers and has a market capitalization of about $82.79 billion.

Lumentum counts Nvidia (NVDA) as both a customer and, since March, a $2 billion shareholder through a preferred stake. That preferred stake does not convert to common shares until the waiting period under the Hart-Scott-Rodino Act expires, but it gives Nvidia (NVDA) a financial interest in Lumentum’s future. A Marvell deal would place a key laser and optics supplier to Nvidia and other chipmakers under the control of one semiconductor company.

Coherent is Lumentum's main rival in merchant indium phosphide lasers, and the two companies effectively run that market as a duopoly.

Neither company has confirmed a binding agreement.

For now, Lumentum’s after-hours rally and Marvell’s decline reflect investor response to the reported talks rather than confirmation of an acquisition. The next developments to watch would be any formal statements from the companies, additional reporting on the negotiations, or disclosure of proposed terms. Until then, the situation remains that of an unconfirmed, but potentially significant, transaction in the AI data center optics space.