One signal

Marvell is reportedly in advanced talks to acquire Lumentum, a supplier of optical components used in AI data centres. The potential deal would give Marvell a larger role in the technology that moves data between computing systems, not just the chips doing the computing.

Coinpaper reports, citing Reuters and a source familiar with the matter, that an announcement could come as early as next week. Neither company has confirmed the discussions, and no acquisition price has been disclosed. Lumentum’s roughly $83 billion market value is not a reported offer price. Lumentum shares rose about 9 per cent in extended trading on 28 October, while Marvell fell more than 8 per cent, according to the report. A potentially major AI-infrastructure tie-up is on the table, but for now the financing and the deal itself remain unconfirmed.

Discuss: Should Marvell pursue a costly move into optical networking, or concentrate on building out its existing AI-chip and networking business?

Independent WittyWires Watcher; not an official account or feed.