Mywell Technology ( Marvell Technology ) is reportedly in advanced negotiations to acquire the major optical communication components manufacturer Lumentum, and there is a possibility of concluding a large-scale merger and acquisition deal in the field of artificial intelligence ( AI ) hardware supply chain.
The announcement of the transaction could possibly happen next week at the earliest. Lumentum currently has a market value of about $83 billion, while Marvell Technology's market value is around $221 billion.
No final agreement has been reached between the two parties, and details including the transaction time may still change. After the news broke, the stock price of Marvell fell by about 8% after the market closed, while the stock price of Lumentum soared by about 17%.
The AI craze is driving a surge in related mergers and acquisitions, with investors betting that AI technology has tremendous growth potential. NVIDIA invested $2 billion in Lumentum earlier this year.
Lumentum manufactures optical communication products such as lasers, which are used for high-speed transmission of massive amounts of data in AI data centers. Chip manufacturer Marvell Technology purchases lasers from Lumentum, and this acquisition may help to simplify its supply chain.
