$MRVL DROPS 12% ON TALKS TO BUY AN $83B AI OPTICS COMPANY
Marvell is reportedly in advanced talks to acquire $LITE, a major supplier of optical components used in AI data centers.
Why this could be Marvell’s biggest bet yet:
- $LITE is valued at ~$83B, more than 25x Marvell’s Celestial AI deal ($3.25B).
- Lumentum reportedly holds 70–80% of the pump laser market, and is
almost sold out for 2029.
- Marvell already buys lasers from Lumentum, so this would bring a key supplier in-house.
- $LITE's revenue more than doubled (+109% YoY) to $1.01B last quarter.
- $NVDA has also invested $2B in $LITE.
But the market is worried about dilution.
A deal this size likely can’t be paid for entirely in cash, so stock or debt is probably involved. Google already holds a warrant for up to 59M additional $MRVL shares.
Is the market punishing the price, or the dilution?