October 29, 2026 / SemiMedia / — Marvell Technology is in advanced talks to acquire optical components supplier Lumentum Holdings, with an announcement possible as early as next week, according to reports citing people familiar with the discussions. No final agreement has been reached, and the timing could change.

Lumentum shares rose in after hours trading following the reports, while Marvell shares declined. The companies have not announced a purchase price or payment structure.

The potential combination would bring together Marvell’s data center connectivity chips and optical digital signal processors with Lumentum’s lasers and other optical components. These technologies support high speed links within and between AI data centers.

Lumentum reported fiscal fourth quarter 2026 revenue of $1.006 billion, up 109.3 percent from a year earlier. The quarter ended June 27, 2026, reflecting strong demand as AI infrastructure investment expands.

Marvell has already expanded its photonics portfolio through Celestial AI. It announced that acquisition in December 2025 with upfront consideration valued at $3.25 billion and completed the transaction in February 2026.

Lumentum also has a multiyear strategic relationship with Nvidia. In March, Nvidia announced a $2 billion investment in the company, alongside a multibillion dollar purchase commitment and future capacity access. The agreement is nonexclusive.

Combining semiconductor and optical component capabilities could support closer product development, although neither company has outlined integration plans for a potential transaction. Financing, final terms and any required approvals remain unresolved.