Marvell has agreed to acquire optical components maker Lumentum in an all-stock deal with an implied enterprise value of $115 billion. "AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," said Marvell Chairman and CEO Matt Murphy. "The companies that move first and help define this transition will set the standard for decades to come." CNBC reports: Through the acquisition, Marvell said it can combine electrical and optical technologies to meet accelerating and shifting AI connectivity demands across regions and systems. Companies are increasingly relying on optical connections to piece together chips used to run and train large language models. Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share under the agreement. The deal is expected to close during the first half of 2028. Marvell's takeover marks one of the most significant bets on AI in 2026 and comes despite recent concerns over the long-term sustainability of infrastructure spending.

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