Marvell to Buy Lumentum for $115 Billion in Stock Deal; Nvidia CEO Huang Backs Merger

Nvidia Chief Executive Officer Jensen Huang has voiced support for Marvell Technology’s blockbuster acquisition of optical-components maker Lumentum Holdings Inc., Bloomberg reported on November 2.

Before announcing the merger, Marvell CEO Matt Murphy and Lumentum CEO Michael Hurlston spoke with Huang by phone to seek his views on the deal, according to Bloomberg. Huang responded positively to the companies’ plan.

Marvell agreed to acquire Lumentum in an all-stock transaction. The deal is valued at about $115 billion including debt, making it the second-largest merger in tech industry history. On an equity-value basis, the transaction is worth about $103 billion.

The acquisition is aimed at securing the high-speed data-transfer technology needed for AI data centers. Marvell plans to combine its custom-chip design capabilities with Lumentum’s optical communications technology to improve data-processing efficiency between AI servers and semiconductors.

Nvidia is also focused on the growing importance of optical communications technology as AI infrastructure expands. The company invested $2 billion each in Marvell and Lumentum earlier this year. As AI data centers grow larger, interconnect speeds between semiconductors are becoming a key determinant of overall system performance.

Hurlston said in a Fox Business interview on November 2 that Nvidia reacted very positively to the merger. Combining the two companies’ technologies would allow them to supply Nvidia with a broader range of products more quickly.

The companies have been discussing a possible merger since last summer, Bloomberg reported. They had initially planned to announce the transaction on November 5, when Lumentum was scheduled to report earnings, but moved up the timing after news of the talks leaked.

The acquisition underscores how growth in the AI industry is accelerating a reshaping of semiconductor and data-center supply chains. It also shows technology companies pursuing large-scale deals to secure core technologies and production capacity as the US regulatory environment for mergers and acquisitions becomes more permissive.