Marvell to acquire Lumentum for $115B in AI interconnect push

The scale of this deal makes it a bet on vertical integration in AI infrastructure, pairing Marvell's silicon with Lumentum's optics at a moment when Lumentum's order book and guidance suggest optical demand is running well ahead of expectations. The sharp selloff in both stocks, alongside a broader chip retreat into technical correction, signals that the market is treating the price and integration risk as the immediate story rather than the strategic logic. What matters next is whether Lumentum's order commitments convert into delivered revenue and whether the combined entity can hold customers who may prefer independent suppliers.