“Marvell and Lumentum: A Brilliant Deal or a $115B Mistake?”Cited source: Lumentum CEO Michael
AI summary · Lumentum is at an attractive level with strong momentum: fiscal Q1 2027 revenue up 136.5% year over year to about $1.26 billion, with guidance of about $1.6 billion at 45-46% margins implying at least 20% sequential growth. The speaker leans toward management's case that the Marvell merger is right but cannot verify it, and notes the fixed 4.5-for-1 ratio ties Lumentum mechanically to Marvell's declines; he would rather hold Marvell, though Lumentum could be a buying opportunity if the deal, expected to complete in 2028, falls through — possibly taking quarters.
If you are an investor in Marvell or Lumintum today, you are probably wondering : What is happening in the world of chips? Marvell recently announced its acquisition of Lumintum by paying a premium, yet the stock of both companies has declined.
The market is wondering what the hell is going on. If you are performing so well, why are you selling your optics business ?