Marvell to acquire Lumentum for optical data transfer

Chip manufacturer Marvell, valued at $200 billion, is reportedly planning to acquire optical data transfer firm Lumentum, valued at $85 billion with $3 billion in revenue last year, according to a Bloomberg report. The deal aims to secure laser expertise for high-speed fiber optic transmission in AI data centers, a sector where Marvell already sells components. Marvell's stock fell 10% on the news, reflecting investor skepticism about the high valuation. In related market movements, Air Liquide, an industrial gas supplier for semiconductor production, rose 2% to gain 20% this year on strong sales. Microsoft issued $25 billion in bonds, its first since 2017, with demand exceeding $100 billion, indicating continued capital availability for AI infrastructure. The acquisition would allow Marvell to integrate optical technology more deeply into its data center solutions, addressing the growing bandwidth demands of AI workloads.