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Why Nvidia’s Jensen Huang Backed Marvell’s $115 Billion Lumentum Deal
Marvell’s proposed all stock acquisition of Lumentum carries a $115 billion enterprise value and is expected to close in the first half of 2028. Lumentum shareholders would receive 4.5 Marvell shares for each share they own; because the exchange ratio is fixed, the offer’s dollar value can move with Marvell’s stock...
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Key takeaways
- Marvell’s proposed all stock acquisition of Lumentum carries a $115 billion enterprise value and is expected to close in the first half of 2028.
- Lumentum shareholders would receive 4.5 Marvell shares for each share they own; because the exchange ratio is fixed, the offer’s dollar value can move with Marvell’s stock price.[8]
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openai.comCreate a landscape editorial hero image for this Studio Global article: What are the key details and strategic implications of Marvell Technology’s merger with Lumentum, including how CEOs Matthew Murphy and Mich. Article summary: Marvell’s proposed acquisition of Lumentum is a $115 billion enterprise-value, all-stock bet on optical networking becoming central to AI data centers; Bloomberg reports that the companies secured Jensen Huang’s blessing. Topic tags: general, news, general web, user generated, government. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermar
Marvell’s proposed acquisition of Lumentum is a $115 billion enterprise-value bet on optical connectivity for AI data centers. Bloomberg reported that Marvell CEO Matthew Murphy and Lumentum CEO Michael Hurlston sought Nvidia CEO Jensen Huang’s views before announcing the deal—and received his support.3
41 That endorsement may matter commercially, but it is not a substitute for the transaction’s own review and execution.
The deal terms at a glance
Marvell announced the all-stock agreement on November 2, 2026. Lumentum shareholders would receive 4.5 shares of Marvell for each Lumentum share. The companies put the implied value at about $1,132 per Lumentum share, with an enterprise value of $115 billion.8
The exchange ratio is fixed, not the dollar value: what Lumentum shareholders ultimately receive in market value will change as Marvell’s share price moves. The reported per-share figure represented a 23.9% premium to Lumentum’s October 28 closing price, the last trading day before speculation about a deal began.7
Marvell shareholders are expected to own about 67% of the combined company, leaving roughly 33% for Lumentum shareholders. The deal is expected to close in the first half of 2028; it remains a proposed transaction, not a completed merger.3
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Bloomberg described the deal as the largest ever in the global technology sector on an equity-value basis, excluding the SpaceX–xAI tie-up. The New York Times described it as the largest deal by value between publicly held technology companies. Those labels use different comparisons, so rankings depend on the deal category and valuation measure.2
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Why Nvidia’s reported support is notable
Bloomberg reported that Murphy and Hurlston called Huang before the announcement to seek his views. The report, citing people familiar with the matter, characterized Huang’s response as supportive.41 Hurlston separately described Nvidia’s reaction as “super positive” and said the combined companies could bring more products to Nvidia more quickly, according to an account of his interview.
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Nvidia is more than an outside observer: Reuters reported that it had invested $2 billion in each company earlier in 2026.35 That makes Nvidia’s interest in the combination understandable, but its support should not be read as a guarantee that the deal will succeed—or as regulatory or shareholder approval.
The AI-connectivity strategy
Marvell brings chip and electrical-connectivity capabilities; Lumentum makes optical components. The companies’ strategic bet is that optical networking will become increasingly important as AI data centers handle growing connectivity demands.2
11 Combining those areas could give customers a more coordinated set of technologies for moving data through AI infrastructure.
The deal also positions Marvell to compete more directly with Broadcom for AI-related spending, according to Reuters.34 Whether the combination delivers that advantage will depend on execution and on demand for AI infrastructure; the available reporting does not establish that the promised faster product delivery will necessarily follow from the merger.
Leadership, timing and open questions
Reuters reported that Murphy would remain chairman and CEO of the combined company. A deal summary also says three Lumentum directors, including Hurlston, would join Marvell’s board.35
17 These arrangements are prospective and depend on the transaction closing.
The deal was announced November 2 after media reports had surfaced the prior week.3
33 The available sources do not establish that a leak forced the companies to move the announcement forward from a planned November 5 earnings release, so that explanation remains unverified.
Why investors may still be cautious
Bloomberg reported that shares of both companies slid after the announcement amid investor concerns about the risks of a large AI-related deal in a jittery market.5 That reaction highlights the gap between an attractive strategic story and confidence in the price, financing structure and integration.
The all-stock terms create another source of uncertainty for Lumentum holders: a decline in Marvell’s share price would reduce the market value of the shares they are due to receive, even though the 4.5-for-1 exchange ratio stays the same.8 Huang’s reported support signals commercial interest; it does not answer whether the combination will create enough value to justify its scale.
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Marvell’s proposed all stock acquisition of Lumentum carries a $115 billion enterprise value and is expected to close in the first half of 2028.
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Marvell’s proposed all stock acquisition of Lumentum carries a $115 billion enterprise value and is expected to close in the first half of 2028. Lumentum shareholders would receive 4.5 Marvell shares for each share they own; because the exchange ratio is fixed, the offer’s dollar value can move with Marvell’s stock price.[8]