Marvell announced plans to acquire Lumentum in an all-stock transaction valued at approximately $115 billion to expand its operations in the AI infrastructure sector. Lumentum specializes in optical technology, using light to transmit high-speed data. This technology is becoming increasingly critical as AI data centers require connections between tens of thousands of GPUs to process massive volumes of data. Following the announcement, Marvell’s shares fell about 10%, while Lumentum’s shares dropped nearly 16%. The declines may stem from concerns over share dilution and the transaction’s high valuation.