Lumentum jumps on report Marvell in advanced talks to acquire

Lumentum Holdings (LITE) stock rose 11.8% in after-hours trading to $1,021.30 following reports of a potential acquisition by Marvell Technology (MRVL). The deal, valued at approximately $83 billion, is expected to be announced soon. Analysts from StoneX and Jefferies have set price targets of $1,200 and $1,250, respectively, citing strong demand for Lumentum's AI-related components.

Marvell Technology (MRVL) fell 7.8% in after-hours trading on reports of advanced talks to acquire Lumentum Holdings, valued at $83B, raising concerns about deal financing. The stock had risen during regular hours due to a Buy rating and $303 price target from SPDB International, and strong chipmaker tailwinds. The broader market was mixed, with the Nasdaq and S&P 500 down slightly.

Marvell (MRVL) is in advanced talks to acquire Lumentum (LITE), causing LITE shares to rise 9% and MRVL to drop 7% in after-hours trading. The deal, potentially finalized next week, would combine Marvell's $221B market cap with Lumentum's $83B, addressing AI infrastructure demands. Lumentum's optical tech is critical for data centers, and the acquisition would vertically integrate Marvell's supply chain.

Marvell Technology (MRVL) shares rose 2.1% to $248.60 after SPDB International initiated coverage with a Buy rating and $303 price target. The company reported Q2 revenue of $2.739B and adjusted gross margin of 58.9%, with Q3 revenue forecast at $3.150B and margin expected to ease to 57.5%-58.5%. Investors await evidence of earnings growth amid high valuation metrics.

Coherent (COHR) and Lumentum (LITE) shares rose 6% and 8% respectively after StoneX initiated coverage with Buy ratings and price targets of $425 and $1,200. StoneX cites Coherent's six-inch InP laser production and Lumentum's market position in high-speed InP lasers and cloud transceivers. Coherent's earnings estimates have been rising, with fiscal 2027 EPS expected at $9.39. StoneX's target implies a 45x multiple on fiscal 2027 earnings, above Coherent's five-year average of 24x.

Lumentum (LITE) stock rose 8.2% on October 26, 2026, following a Buy rating and $1,200 price target from StoneX. The gain coincided with a broader rally in optical networking stocks, tied to Anthropic's IPO filing. Lumentum's revenue for fiscal Q4 2026 was $1.01 billion, up 109.3% year-over-year. The stock's movement was part of a larger sector advance, with technology stocks and peers also gaining.