Marvell Technology has announced a $115 billion all-stock acquisition of optical components maker Lumentum, including debt, in one of the biggest technology deals of 2026. The acquisition marks a major strategic move by the custom chipmaker to strengthen its position against larger rival Broadcom amid the global artificial intelligence spending boom. Under the agreement, Marvell will pay $1,132 per share in stock, representing a 23.9% premium to Lumentum’s closing price on October 28, valuing the equity portion of the deal at approximately $102.54 billion.
The acquisition reflects Marvell’s confidence in sustained demand for optical components that enable high-speed data transmission in AI data centres. The company expects the deal to expand its combined total addressable market to $550 billion, strengthening its portfolio of AI infrastructure and networking technologies. The move also builds on Marvell’s recent investments in photonics, including its $3.5 billion acquisition of Celestial AI in February. Meanwhile, Nvidia, which invested $2 billion each in Marvell and Lumentum earlier this year, further highlights the growing strategic importance of optical technology in the AI ecosystem.
The deal is also expected to strengthen Marvell’s competitive position against Broadcom, which has established partnerships with major technology companies, including Google, for custom AI chips. Marvell has been expanding its presence in the sector, notably securing a deal with Google worth up to $120 billion in potential chip sales through fiscal 2033. With AI data centres driving demand for faster and more efficient connectivity, the acquisition positions Marvell to capitalise on the next phase of AI infrastructure growth.
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