Marvell’s Potential Lumentum Deal Targets AI Optics

Marvell is reportedly in advanced talks to acquire optical-components maker Lumentum, potentially in a deal worth $90 billion to $100 billion. An agreement could be announced as soon as early November, but talks remain unconfirmed and may still be delayed or fall through. Marvell’s potential Lumentum deal would combine Lumentum’s lasers and indium phosphide manufacturing capacity with Marvell’s optical DSP and custom-chip businesses, positioning the companies to meet rising AI data-centre demand for high-speed optical connections as copper links approach practical limits. Lumentum has said some capacity is booked through early 2029 and demand for key products may outstrip supply. Shares initially moved sharply after reports emerged; later trading saw Marvell fall more than 8% and Lumentum rise about 9%, while Coherent also gained. Investors are weighing the strategic benefits against the likely high price, potential dilution and debt, and pressure on Marvell’s margins. Some customers could shift orders to Coherent to preserve supplier choice. The news concerns semiconductor and AI infrastructure rather than cryptocurrency directly, so any crypto-market effect is likely to be indirect and limited.