Marvell Announces Deal With About $115 Billion in Enterprise Value as Tech Shares Slide

Marvell Technology announced an all-stock deal to acquire Lumentum with an enterprise value of about $115 billion, while chipmakers and most crypto-linked stocks fell in a broad U.S. market retreat.

The Nasdaq Composite fell 1.07%, the S&P 500 lost 0.51% and the Nasdaq 100 dropped 1.39%. The Philadelphia Semiconductor Index sank 3.37%, while the Dow Jones Industrial Average gained 0.41%.

Marvell shares fell 12.72%, and Lumentum shares lost 18.59%. Under the Marvell-Lumentum deal, Lumentum shareholders would receive 4.5 Marvell shares for each share they own. The companies expect more than $1 billion in annual cost savings and project the deal will close in the first half of 2028.

Ciena, Cerebras and Astera Labs each fell more than 11%. Oracle declined 8.76% after taking on $10 billion in additional borrowing for AI spending. Fabrinet gained 10.42% in after-hours trading after its quarterly results topped expectations.

Most crypto-linked shares also moved lower. Galaxy Digital fell 8.81%, IREN lost 8.06%, Bitdeer dropped 8.05%, Riot Platforms declined 7.57%, CleanSpark fell 6.78% and Coinbase lost 3.98%. Strategy edged up 0.19%.

The session came amid concerns about how AI investment will be financed and when it will pay off. The companies project closing the Marvell-Lumentum deal in the first half of 2028.