Marvell reportedly in advanced talks to buy optics maker Lumentum

In brief

Developing. Last updated 29 October 2026, 13:05 Dubai time (UTC+4).

Marvell Technology is in advanced talks to buy Lumentum Holdings, which makes optical components for data centers, Bloomberg News reported on 28 October, citing people familiar with the matter. A source told Reuters the same day that a deal could be announced as soon as next week. Neither report gave a price or terms, and no agreement has been announced.

What has been reported

• Timing: a transaction "may be announced as soon as next week", Bloomberg's sources said, adding that the discussions are private. Reuters' source gave the same timing.
• Size of the companies, not a price: Bloomberg put Lumentum's market value at about $83 billion and Marvell's at about $221 billion. These are stock-market values, not an offer.
• Market reaction: Lumentum shares rose about 9% in extended trading after the report and Marvell shares fell more than 8%, Reuters reported.
• Financing: Marvell had about $3.92 billion in cash and cash equivalents as of its latest quarter, Reuters reported. Bernstein analysts told Reuters a deal that size would likely require additional financing and could pose integration challenges.
• Comment: Marvell and Lumentum did not immediately respond to Reuters' requests for comment.

The background

Lumentum's optics carry data between chips and servers in AI data centers. Nvidia said in March that optical interconnect technology is "critical for the continued scaling of AI factories" when it announced a $2 billion investment in Lumentum, alongside a multibillion-dollar purchase commitment. Bloomberg describes Lumentum as "backed by Nvidia".

Marvell has already been buying into optics. It completed its acquisition of Celestial AI, which makes optical interconnect technology, on 2 February 2026, according to Marvell. Reuters reported that Bernstein analysts see the possible Lumentum deal as furthering that push, which the $3.25 billion Celestial AI deal reinforced.

What we do not know

The price, how it would be paid for, whether boards have approved anything, and whether Nvidia's stake affects the talks have not been reported. Talks at this stage can still fall apart.

Why it matters

Moving data between chips has become as much of a limit on AI clusters as the chips themselves, which is why optics suppliers now draw this much money. Buying Lumentum would give Marvell an in-house maker of the lasers and optical components used in AI data centers. The size of the deal is the open question: Lumentum's $83 billion market value is many times Marvell's cash, so any deal would likely need large stock or debt financing.

Sources and scope

• Bloomberg: Marvell Is Said to Near Megadeal for Lumentum in AI Push (28 October 2026)
• Reuters (via MarketScreener): Marvell Technology in advanced talks to buy optics maker Lumentum, source says (28 October 2026)
• Nvidia: NVIDIA Announces Strategic Partnership With Lumentum (2 March 2026)
• Marvell: Marvell Completes Acquisition of Celestial AI (2 February 2026)

Reuters' report was read in full through syndicated text. Bloomberg's article is paywalled; ByteNib read its opening paragraphs, via Bloomberg Law, which contain every Bloomberg detail used here. ByteNib has not contacted the companies. The "Why it matters" section is ByteNib editorial analysis. This article was researched and drafted with AI assistance and edited under ByteNib's editorial standards.

Drafted with AI assistance and reviewed by the editor before publication.

Continue exploring: AI & Machine Learning analysis, the related implementation tutorial, and the structured learning path.