Lumentum’s Market Value at $83 Billion as Talks to Buy It Advance

Key Facts

Marvell is in advanced talks to buy Lumentum, a maker of optical components for data centers, in a deal that could be announced as soon as next week, Reuters reported. Reuters valued Lumentum’s market capitalization at about $83 billion, but that figure does not represent an announced purchase price; the report cited neither an agreed price nor a definitive agreement. The two companies did not immediately respond to requests for comment. After news of the talks, Lumentum shares rose about 9% in extended trading, while Marvell shares fell more than 8%. The potential deal would bring together Marvell’s chips and networking products with Lumentum’s optical components as demand grows for moving data within AI data centers.

Lumentum makes optical components for communications networks and data centers, technologies directly tied to the expansion of AI infrastructure. The company said that rising speed and bandwidth requirements for AI-related computing workloads are leading data center architects to adopt optical links as a primary means of connectivity. Reuters described the potential acquisition as expanding Marvell’s push into optics technologies used in AI infrastructure. Lumentum’s latest results show activity accelerating: revenue was $1,006.3 million in the fourth fiscal quarter ended June 27, 2026. That was an annual increase of 109.3% from $480.7 million in the same quarter a year earlier, and a quarterly rise of 24.5%.

For the fiscal year ended June 27, 2026, Lumentum recorded revenue of $3,014.0 million, compared with $1,645.0 million in the prior fiscal year, an annual increase of 83.2%. The company expects revenue of between $1.225 and $1.275 billion in the first quarter of fiscal 2027. It also set expected non-GAAP operating margin for that quarter at between 39.5% and 40.5%. These figures offer an indication of the company’s business trajectory ahead of its first-quarter results. Lumentum scheduled the release of those results for November 5, 2026, after the market close.

Marvell’s data center revenue was $2,171.5 million in the second quarter of fiscal 2027, ended August 1, 2026, compared with $1,490.5 million a year earlier, an annual increase of 46%. The company attributed the growth to AI-related demand for multiple products, and said sector revenue growth accelerated to 46% year over year. Chief Executive Matt Murphy said the company expects revenue growth to accelerate over the remainder of fiscal 2027. He added that Marvell raised its revenue outlook for fiscal 2027 and 2028 compared with the guidance it gave in the previous quarter. The company had $3,932.8 million in cash and cash equivalents on August 1, 2026.

In October, Marvell raised its fiscal 2028 revenue forecast to $20 billion from $15 billion, citing strong demand for custom AI chips and networking products used in data centers, Reuters reported. At the company’s annual investor day in New York on October 6, 2026, Matt Murphy presented a forecast of about $20 billion for fiscal 2028, $2 billion above the previous guidance of $18 billion that the company announced in August. Murphy and the management team discussed Marvell’s strategy, growth opportunities and role in the next generation of AI infrastructure and data centers. Reuters reported that Marvell shares had nearly tripled during the year as demand for its custom chips and networking products increased. Bernstein analysts said a deal of this size would likely require additional financing and could pose integration challenges. Lumentum shares closed at $913.95 and Marvell shares at $251.65 on October 28; these were daily closing prices, not extended-trading prices.