Marvell to Acquire Lumentum for $115 Billion

Marvell, a maker of custom AI chips, agreed to acquire optical-equipment supplier Lumentum in an all-stock deal valued at $115 billion. The companies plan to complete the transaction in the first half of the year after next, subject to regulatory approval. By equity value, it would be the second-largest global technology-company merger on record, after the merger of SpaceX and xAI.

Lumentum is known as a supplier selected by Nvidia, and demand for optical equipment is rising as data centers expand. It supplies optical components considered a next-generation alternative to copper connections as cluster sizes grow. Lumentum said its component inventory is fully booked through 2029. The acquisition could intensify Marvell’s competition with Broadcom. Both companies’ shares fell overnight amid concerns about shareholder dilution, a high acquisition premium and the risk of losing customers.

Anthropic released an additional amended filing with its third-quarter results. Revenue was $17 billion, up 12-fold from a year earlier, and the company said revenue had increased every quarter since the first quarter of 2025. Its third-quarter net loss nearly doubled year over year to $23.3 billion. Anthropic has $895 billion in spending commitments and is continuing to expand its business. As part of its upcoming IPO, it plans to raise up to $3.5 billion in Japan. That would exceed the amount SpaceX previously raised there and become the largest public offering in Japan by a foreign company. OpenAI has pushed its expected listing to next year, and Anthropic’s IPO is being viewed as a test of cooled investor appetite for AI.

Oracle is pursuing the equity and bond offerings it announced at an investor day last week, aiming to raise $20 billion. The company has more than $125 billion in debt, nearly twice its annual revenue, and the additional fundraising has heightened concerns about its finances, pressuring both its shares and bonds. Oracle’s share price has fallen nearly 40% this year. Meta is also pursuing a bond sale of at least $20 billion to fund AI infrastructure. The plan came a week after it announced a $97.5 billion equity offering, the largest on record. Meta issued investment-grade bonds worth $30 billion last year and $25 billion in April this year. Its third-quarter cash outflow exceeded $2.1 billion, and S&P lowered its outlook on Meta from “stable” to “negative.”

The combined third-quarter net profit of five major oil companies, including ExxonMobil, Shell and BP, reached $50 billion. They are using earnings to repay debt and support their share prices instead of expanding capital investment. Shell increased its share buybacks by nearly 70%, while ExxonMobil announced plans for an additional $20 billion in buybacks next year. BP said it would use most of its increased net profit to repay debt. Expectations that oil demand could fall after the war ends were cited as a factor. Concerns were also raised about higher oil prices, inflation across countries and prolonged shortages of oil products.

Deutsche Bank said the recent decline in U.S. technology stocks was excessive and that much of the related risk was already reflected in share prices. It upgraded its view on technology stocks just three weeks after its previous assessment. The bank cited technology stocks’ relative returns being near the bottom of their long-term range and investors’ relatively low equity holdings in the U.S. market. Morgan Stanley identified the U.S. midterm elections as a potential trigger for a market correction and said the S&P 500 could fall to around 7,100, about 9% below its record high. It also forecast a possible bull market reaching 8,000 after the election, which could present an investment opportunity.

Marvell, a maker of custom AI chips, agreed to acquire optical-equipment supplier Lumentum in an all-stock deal valued at $115 billion. The companies plan to complete the transaction in the first half of the year after next, subject to regulatory approval. By equity value, it would be the second-largest global technology-company merger on record, after the merger of SpaceX and xAI.

Lumentum is known as a supplier selected by Nvidia, and demand for optical equipment is rising as data centers expand. It supplies optical components considered a next-generation alternative to copper connections as cluster sizes grow. Lumentum said its component inventory is fully booked through 2029. The acquisition could intensify Marvell’s competition with Broadcom. Both companies’ shares fell overnight amid concerns about shareholder dilution, a high acquisition premium and the risk of losing customers.

Anthropic released an additional amended filing with its third-quarter results. Revenue was $17 billion, up 12-fold from a year earlier, and the company said revenue had increased every quarter since the first quarter of 2025. Its third-quarter net loss nearly doubled year over year to $23.3 billion. Anthropic has $895 billion in spending commitments and is continuing to expand its business. As part of its upcoming IPO, it plans to raise up to $3.5 billion in Japan. That would exceed the amount SpaceX previously raised there and become the largest public offering in Japan by a foreign company. OpenAI has pushed its expected listing to next year, and Anthropic’s IPO is being viewed as a test of cooled investor appetite for AI.

Oracle is pursuing the equity and bond offerings it announced at an investor day last week, aiming to raise $20 billion. The company has more than $125 billion in debt, nearly twice its annual revenue, and the additional fundraising has heightened concerns about its finances, pressuring both its shares and bonds. Oracle’s share price has fallen nearly 40% this year. Meta is also pursuing a bond sale of at least $20 billion to fund AI infrastructure. The plan came a week after it announced a $97.5 billion equity offering, the largest on record. Meta issued investment-grade bonds worth $30 billion last year and $25 billion in April this year. Its third-quarter cash outflow exceeded $2.1 billion, and S&P lowered its outlook on Meta from “stable” to “negative.”

The combined third-quarter net profit of five major oil companies, including ExxonMobil, Shell and BP, reached $50 billion. They are using earnings to repay debt and support their share prices instead of expanding capital investment. Shell increased its share buybacks by nearly 70%, while ExxonMobil announced plans for an additional $20 billion in buybacks next year. BP said it would use most of its increased net profit to repay debt. Expectations that oil demand could fall after the war ends were cited as a factor. Concerns were also raised about higher oil prices, inflation across countries and prolonged shortages of oil products.

Deutsche Bank said the recent decline in U.S. technology stocks was excessive and that much of the related risk was already reflected in share prices. It upgraded its view on technology stocks just three weeks after its previous assessment. The bank cited technology stocks’ relative returns being near the bottom of their long-term range and investors’ relatively low equity holdings in the U.S. market. Morgan Stanley identified the U.S. midterm elections as a potential trigger for a market correction and said the S&P 500 could fall to around 7,100, about 9% below its record high. It also forecast a possible bull market reaching 8,000 after the election, which could present an investment opportunity.