Tech stocks rebound after sell-off; Marvell to buy Lumentum for $115B

what happened

According to Seeking Alpha, tech shares stayed under pressure this week, but the Nasdaq Composite closed higher on Friday and recovered part of a slide that marked its worst day in more than a year. Qualcomm shares plunged after smartphone chip revenue fell 26% as rising memory prices weighed on handset demand. The company reported adjusted earnings of $2.17 per share and revenue of $10.44 billion, down 7% year over year, alongside mixed guidance.

Marvell said it intends to acquire Lumentum in an all-stock deal that values Lumentum at an enterprise value of $115 billion, or about $1,132 per share. Bloomberg reported that both companies' CEOs consulted Nvidia CEO Huang before the announcement, and he gave his blessing. AMD closed nearly 4% higher in extended trading on better-than-expected third-quarter results and guidance, but it booked a charge of more than $1 billion tied to warrants issued to OpenAI and Meta, and its stock fell over 17% on Thursday. Micron dropped more than 17% after suspending a memory chip plant in Taiwan amid a prolonged labor dispute.

why it matters

The roundup shows how sensitive chip and AI-linked stocks are to earnings and to concerns that political scrutiny could slow data-center development and infrastructure spending. Consolidation among key AI chip suppliers, such as the Marvell and Lumentum deal, could reduce bottlenecks in the AI buildout, which keeps the sector's supply chain in focus for investors.

market impact

Chip stocks: earnings and M&A news drive sharp moves in both directions

• ▼Qualcomm shares pressure down — smartphone chip revenue fell 26% and guidance was mixed
• ▲AMD shares pressure up — third-quarter results and guidance topped Wall Street forecasts
• ↔Nasdaq Composite mixed — weekly rebound partly offset by a sharp earlier sell-off in chip stocks

instruments