Lumentum shares jump on report Marvell is near a deal to buy it
Lumentum rose after hours on a Bloomberg report that Marvell is close to acquiring the optical maker, with an announcement possibly next week.
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what happened
Lumentum Holdings (LITE) gained 11.4% in after-hours trading on Wednesday after Bloomberg, citing people familiar with the matter, reported that Marvell Technology (MRVL) is nearing an acquisition of the optical-networking firm. According to Dow Jones Newswires, the two companies have not yet signed a final agreement, though an announcement could come as soon as next week.
Marvell shares fell 8% over the same period. The company is best known for custom chips, but its optical unit has drawn more investor attention this year as AI infrastructure buildouts push operators to move large volumes of data faster inside and between data centers. Optical links carry information using light rather than electrical signals, and investors have long weighed them against copper.
Earlier this year Nvidia (NVDA) signed multiyear, non-exclusive deals with Lumentum and Coherent (COHR) worth billions of dollars for advanced laser systems and other optical parts, and invested $2 billion in each company. Representatives of Lumentum and Marvell have not yet commented to MarketWatch.
why it matters
The reported deal puts a takeover premium in focus: Lumentum's gain reflects hopes for a buyout price, while Marvell's drop shows some investors are skeptical of the purchase. Because demand for optical networking is closely tied to AI spending, confirmation or denial of the deal could affect how the market values both companies.
market impact
Lumentum and Marvell: takeover rumors push the two stocks in opposite directions
- Lumentum shares pressure up — hopes for a takeover premium in the reported deal
- Marvell shares pressure down — drop on the report of a possible purchase of Lumentum
tags
instruments
sources
- Lumentum's stock pops as investors cheer a possible sale to Marvell — Dow Jones Newswires, 28 October 2026 at 22:08 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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