Marvell Technology (NASDAQ:MRVL), a data infrastructure semiconductors provider, closed at $218.34 on Oct. 29, down a whopping 13.24%. The stock fell after reports surfaced that the company was in advanced talks to buy Lumentum Holdings, as investors weigh financing and integration risks.
Trading volume reached 40.4 million shares, coming in about 87% above its three-month average of 21.6 million shares. Marvell Technology IPO’d in 2000 and has grown 1,442% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) closed at 7,720, down 0.31%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,185, down 1.38%. Among semiconductor peers, Broadcom closed at $345.00, down 1.94%, and Nvidia closed at $213.66, down 0.80%, as chipmakers traded lower in a soft session for data infrastructure names.
What this means for investors
On Thursday, Oct. 29, reports surfaced that Marvell was in advanced talks to acquire Lumentum, a specialist in in lasers and high-speed optical components that are critical to powering AI data centers. Lumentum stock was up 0.61% to $919.53 at the close.
The rumors kept Marvell shares under pressure, with investors focused on financing and dilution risk. The deal is said to be an all-stock transaction that could value the combination as one of the largest global tech industry mergers of the year.
A final agreement has not yet been officially reached, but sources indicate a deal could be formally announced as early as next week. If true, gaining Lumentum positions Marvell to be a major player in the artificial intelligence infrastructure boom.
In its investor day conference on Oct. 6, Marvell raised its revenue outlook for its 2028 fiscal year (FY), ended Jan. 31, 2028, to $20 billion. Moreover, it revealed a FY2031 target of $70 billion to $90 billion in sales, and an earnings per share (EPS) target of $30 or more, far above its FY2026 diluted earnings of $3.07 per share. Adding Lumentum would only bolster these impressive numbers.
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