Marvell to Buy Lumentum for $115 Billion in Historic AI Chip Deal
Marvell will buy Lumentum in a $115 billion all-stock deal, aiming to lead AI connectivity after both firms secured $2 billion from Nvidia during March.
Summary
Marvell signed an all stock agreement on November 2, 2026, to acquire Lumentum for $115 billion in enterprise value, including debt, and about $80 billion in equity value. The custom chip designer will exchange 4.5 Marvell common shares for each Lumentum share. The transaction ranks among technology’s largest acquisitions, exceeding Microsoft’s $68.7 billion Activision Blizzard purchase in 2022 and Dell’s $67 billion EMC deal in 2016.
Nvidia is a major shareholder in both companies. In March, it invested $2 billion in Lumentum under a multiyear agreement to buy advanced laser components, supporting Lumentum’s research, development and fabrication expansion. Later that month, Nvidia invested another $2 billion to strengthen Marvell’s optical networking and chip portfolio. Marvell says combining with the optical chip and networking equipment maker will create an AI connectivity leader spanning chips and data centers. Closing is expected in the first half of 2028, subject to approval from both companies’ shareholders and regulators.
Positives
- $115 billion enterprise value makes the transaction one of technology’s largest acquisitions.
- $2 billion from Nvidia supports Lumentum’s research, development and fabrication expansion under a multiyear component agreement.
- $2 billion from Nvidia strengthens Marvell’s optical networking and chip portfolio.
- 4.5 Marvell shares per Lumentum share establishes a defined exchange ratio for the all stock transaction.
- Marvell expects the combined company to offer AI connectivity products spanning chips and data centers.
Risks & concerns
- $115 billion enterprise value includes debt, compared with an equity value of about $80 billion.
- First half 2028 is the expected closing window, leaving the transaction pending for more than a year.
- Shareholders of both Marvell and Lumentum must approve the acquisition before it can close.
- Regulatory approval remains required, leaving completion uncertain.
- Details beyond the exchange ratio, valuations and expected closing period remain limited.