Lumentum’s stock jumped in after-hours trading after reports that Marvell Technology is in advanced talks to buy the data center optics maker. According to Bloomberg, which cited people familiar with the matter, an agreement between the companies could come as soon as next week, though no final deal has been reached.
Lumentum (Credits: MarketWatch)
Investors reacted quickly to the report. Lumentum shares rose roughly 15% to 17% in after-hours trading, while Marvell shares fell around 8% to 11%, a classic split that often follows takeover reports, with the target rising and the buyer dipping. Shares of Lumentum rival Coherent also moved higher, gaining about 4.3% after hours.
Lumentum Marvell Deal: What Bloomberg Reported
Lumentum, valued at about $83 billion, makes lasers and optical components that move huge volumes of data at high speed between servers, telecom networks, and AI data centers. Marvell, valued at roughly $221 billion, already buys lasers from Lumentum, so a deal would bring a key supplier in-house and simplify its supply chain.
The timing fits the AI infrastructure race. As data centers scale up to handle more AI workloads, the optical hardware that shuttles information between servers has become strategically important, and Marvell’s interest reflects how central photonics has become to that build-out.
What Could Still Change Before a Deal
Reports stress that nothing is signed yet, and both the details and the timing could still change. Representatives for both companies could not immediately be reached for comment, according to Bloomberg. Nvidia also looms in the background: earlier this year it invested $2 billion in Lumentum, underlining how important the company’s technology is to the AI supply chain.
If a deal is announced next week, it would rank among the largest AI-related transactions of the year. Until then, the market’s reaction shows investors are already pricing in the possibility.
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Source: MarketWatch — read the full story there.
