Marvell Technology is buying optical-components maker Lumentum in a deal valued at $115 billion, as the custom chipmaker steps up its challenge to larger rival Broadcom amid an AI spending boom.
The deal, announced on Monday, is one of the biggest in 2026 and among the boldest corporate bets yet on an AI boom that chip executives expect to underpin industry demand for years.
Tune in at 9:15 a.m. ET as Marvell CEO Matt Murphy and Lumentum CEO Michael Hurlston join CNBC TV to discuss the deal. Watch in real time on CNBC+ or the CNBC Pro stream.
By buying Lumentum - a company roughly half its size - Marvell is betting that Big Tech's AI spending boom is here to stay and would keep demand for optical components used to move data at high speeds outstripping supply.
AI chip giant Nvidia invested $2 billion each in Marvell and Lumentum earlier this year.