This American chip technology company announced that it will acquire Lumentum Holdings, a company that produces photon technology for data centers. The transaction will be conducted entirely in stock and is worth $115 billion. The stock price of Marvell fell by nearly 13%, while the stock price of Lumentum closed down more than 18% on the same day.

The transaction between Marvell and Lumentum will mark the alliance of two major AI hardware manufacturers. At the same time, investors are becoming increasingly cautious about the future of AI transactions and the economic viability of the current data center boom, which is particularly fragile.

TheStreet Pro, the Chief Portfolio Manager, writes: "Although it might make business sense for Marvell and Lumentum to join forces, whether it makes financial sense depends on how much the management of Marvell is willing to pay, as well as the resulting incremental revenue and profits, plus any additional synergies."

Before the market reacted to the Marvell-Lumentum transaction, other financial professionals had also raised doubts about data center construction. An analyst from Bernstein Research stated earlier in October that after analyzing thousands of planned data center projects, only 35% of the currently planned capacity is likely to be actually completed.

At the same time, some investors are also preparing for the impact of the mid-term elections. If the expected change in power balance in Washington by Democrats results in increased scrutiny and pressure on data center builders, it could put them in a difficult position during the election season, as they have already faced political backlash from local communities. Analysts at Morgan Stanley point out that this situation could pose a risk to AI transactions.

Analyst Sebastien Naji wrote in a report to investors on Monday: "Although the market's comments on the demand for AI were constructive, the market reaction was quite the opposite; semiconductors and AI infrastructure continued to be sold off (the SOXX index fell 17% in October, dropping 28% from its June high)."