Marvell Buys Lumentum in 115 Billion AI Data Center Deal

A major semiconductor takeover is reshaping the AI infrastructure market after Marvell Technology agreed on Monday to acquire optical-components maker Lumentum in a deal valued at $115 billion, according to CNBC. The transaction deepens Marvell's push into data center hardware as companies increase spending on artificial intelligence systems.

According to CNBC, the acquisition ranks among the biggest deals of 2026 and signals Marvell's confidence that demand for high-speed optical components will remain strong. Those parts are used to move data quickly across AI data centers, where computing workloads continue to expand.

The purchase also strengthens Marvell's position against Broadcom, according to CNBC. Broadcom has long served as Google's main custom-chip partner and offers a wider range of AI data center hardware products.

Marvell's rise has been rapid. According to CNBC, the company's market value climbed to more than $170 billion after it helped technology groups including Amazon develop custom AI chips and networking gear for data centers.

In August, Marvell secured a deal to supply chips that work alongside Google's AI processors, according to CNBC. That agreement was valued at up to $120 billion in sales through fiscal 2033 and gave Google the right to buy a $12.2 billion stake.

Lumentum enters the deal after market turbulence. Since reports of the talks emerged late last month, Lumentum shares have fallen about 8% and Marvell shares about 22%, according to CNBC, as a broader chip selloff intensified after Intel issued a weak forecast.

According to CNBC, Lumentum could gain from a proposed US ban on new Chinese optical transceivers, a move that may redirect demand to domestic suppliers. The company competes with Coherent in the United States and Zhongji Innolight in China.

Marvell has already expanded its photonics business this year. CNBC reported that the company completed a $3.5 billion purchase of Celestial AI in February as AI agents and chatbots increased the need for faster optical links connecting thousands of chips inside data centers.

Investor enthusiasm around Marvell has also accelerated this year. CNBC reported that its shares reached a record high in June after Nvidia CEO Jensen Huang called the company the next "trillion-dollar company."

Marvell's annual revenue has more than doubled from $3 billion in fiscal 2021 to $8.2 billion in fiscal 2026, according to CNBC. The Lumentum acquisition is Marvell's largest purchase since its $10 billion acquisition of Inphi in 2021.