$MRVL x $LITE What the sellside thinks: Stifel: Reiterates $MRVL Buy, $370 PT. The strategic logic is strong: > Extreme codesign across AI fabrics. > Scale-up integrated optics. > Build a scaled U.S. transceiver supplier amid potential Chinese restrictions. > Lock in laser supply (the real bottleneck). Bernstein: A deal of this size “likely can’t be funded entirely with cash.” > Dilution + integration risk is real. Morgan Stanley: Marvell’s DSP client base includes optical module makers that compete directly with $LITE. This could undermine the supplier-neutral reputation $MRVL relies on. > Could create a major potential conflict of interest that may put its current DSP revenue at risk. Market reaction was clear: LITE +9–11% AH, MRVL -8%. The bottleneck thesis doesn’t change. Whoever controls the laser controls scale-up. It is very important to pick the winners now.