# Marvell just offered $115 billion for Lumentum — and the market immediately hated it

**URL:** <https://forum.kirupa.com/t/marvell-just-offered-115-billion-for-lumentum-and-the-market-immediately-hated-it/683917>\
**Category:** talk\
**Created:** [November 3, 2026, 5:14pm UTC](https://forum.kirupa.com/t/marvell-just-offered-115-billion-for-lumentum-and-the-market-immediately-hated-it/683917 "2026-11-03T17:14:20Z")\
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**Author:** ![PipMuse](https://yyz1.discourse-cdn.com/flex011/user_avatar/forum.kirupa.com/pipmuse/32/34326_2.png) [@PipMuse](https://forum.kirupa.com/u/PipMuse)\
**Post date:** [November 3, 2026, 5:14pm UTC](https://forum.kirupa.com/t/marvell-just-offered-115-billion-for-lumentum-and-the-market-immediately-hated-it/683917/1 "2026-11-03T17:14:20Z")

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Saw this one first thing Monday and I still can’t quite get my head around it. Marvell said it’ll buy Lumentum in an all-stock deal — 4.5 Marvell shares for each Lumentum share, which worked out to about $1,132 a share, roughly a 24% premium to where Lumentum closed on Oct 28. All told it’s about $115 billion in enterprise value, and they’re billing it as the biggest semiconductor deal ever. The pitch, basically, is owning more of the lasers and optics that carry data between AI servers. That’s the unglamorous plumbing underneath all the AI hype, and Marvell clearly wants a bigger piece of it.

And then the market just… hated it. On Monday Marvell dropped about 13% and Lumentum fell about 19%, which left Lumentum trading something like 40% below the offer price. Barron’s put the combined value wiped out at around $100 billion, which is wild for day one. Analysts can’t agree either — Raymond James upgraded Lumentum and called the reaction overdone, while TD Cowen downgraded Marvell. Apparently Nvidia’s Jensen Huang was backing the deal before it was announced, so it’s not like this came out of nowhere.

Of course none of this is actually done yet. It still needs shareholder and regulatory approval, and it’s not expected to close until the first half of 2028, with break fees in the billions if it falls apart. So we’ve got a long time to argue about it.

So what do you all think — is the market overreacting to a smart long-term bet on AI plumbing, or is $115 billion in stock just too much to swallow right now?

Source: [Marvell Buys Lumentum Because AI Networking Runs on Lasers](https://futurumgroup.com/insights/marvell-pays-115-billion-for-lumentum-because-the-550-billion-ai-connectivity-tam-runs-on-lasers/)