Marvell to buy Lumentum in $115 billion AI data-center bet

The acquisition extends Marvell's push into optical interconnectivity for AI data centers. This year, Marvell closed a multibillion-dollar deal for Celestial AI, a startup focused on optical interconnectivity technology. The Lumentum deal is described as one of the most significant bets on AI in 2026, coming despite recent concerns over the long-term sustainability of infrastructure spending.

Nvidia has invested in both Marvell and Lumentum, and Marvell CEO Matt Murphy framed the deal as a double down on supporting Nvidia's ecosystem. Nvidia has positioned itself as a central cog in a network of related companies, investing in technology companies that purchase its chips or neoclouds that rent out computing capacity, which has sparked criticism that companies like Nvidia are virtually funding themselves by taking stakes in customers.

Both stocks have been huge winners in the AI boom, with Marvell more than doubling in the past year prior to Monday's sell-off and Lumentum quadrupling over that stretch. Marvell's market value has more than tripled over the last three years, while Lumentum's stock has more than doubled in 2026 alone. The fixed-ratio structure means the deal's ultimate value will depend on Marvell's share price.