Marvell reportedly in talks to combine with Lumentum in AI connectivity push

A reported all-stock deal would pair Marvell's chips with Lumentum's lasers, though Marvell shares fell on the news Marvell Technology is reportedly in advanced talks to acquire Lumentum Holdings. The combination would create a company built around one of the less glamorous but increasingly critical parts of the AI boom: moving data between chips at very high speed. Bloomberg reported the discussions on October 28, 2026. A deal could be announced as early as the following week, though it would still have to clear regulators. What’s on the table The reported structure is an all-stock transaction. That means Lumentum shareholders would be paid in Marvell shares rather than cash. Lumentum’s market capitalization is estimated at between $83-85 billion. Marvell’s is approximately $196-221 billion. The two companies do different jobs. Marvell designs semiconductors. Lumentum makes optical lasers and components used inside AI data centers. The stated strategic goal is to give Marvell a stronger position against industry leaders such as Broadcom. The market’s split verdict Traders reacted quickly once the reports surfaced. Marvell’s stock fell 8-15% in after-hours trading. Lumentum’s share...