$MRVL · Meet Kevin · 2026-10-29

we just got a huge deal between Marvel and Lumintom that's supposedly in the works and could happen as early as next week. Well, the deal could be announced as early as next week.

Now, this is crazy because we're talking about Marvel, a $221 billion company, which Jensen himself has suggested could be the next trillion-dollar company.

This is a potentially crazy acquisition for Marvel, which doesn't have the balance sheet to justify it. That's why its stock is falling.

So, the gist of what's happening is that Marvell's CEO is betting his full weight on Combined Optics (CPO), fiber optics, and laser communications.

But the key point is that Marvell is adopting the view that we will start to see tank connectivity that is entirely fiber-based. We will see that the connection between the chips is based on fibers, and then we will see that the connection within the chip is based on fibers.

Because the speeds will become so insane that you will crash into what they call the "copper wall".

Marvell only accounts for between 12 and 25% of the ASIC market. Thus, Marvel takes a different approach than Broadcom.

Marvel, however, says: "No way, man. We're going to go for optics because we believe optics will be the solution of the future."

I think the answer is to buy both, right ? Such as Broadcom and Marvel. This is not personal advice. I have investments in both companies. For the sake of complete transparency.

Marvel will also receive some TPU revenue. You might think this makes Nvidia skeptical of fiber optics . No, Nvidia has invested $2 billion in Marvell and $2 billion in Lumintom.

In both of them together. Nvidia has a collective investment of $4 billion.

What they see is that Nvidia will prepare Marvel to do its best to integrate its products into Nvidia's ecosystems. In this way, Nvidia and its "CODA" moat remain strong, and Marvel does not undermine Nvidia's supremacy.

And then Marvell comes in, that little entity that says, "Yeah, but we design all these niche chips, and they're all designing custom chips." They really would like to be able to integrate it into your Nvidia system .

The answer is a lot of them. Marvel manufactures "Trinium XBU", which represents approximately 15.5% of its revenue . And 8.4% of their revenue comes from, I don't know how to pronounce it, "Maya," Microsoft's custom processing unit.

So, Marvel is making all these deals with Amazon, Microsoft, Google, and Meta. Those are companies that spend a lot of money on artificial intelligence.

And then Marvell says, " Great." We have infiltrated Nvidia's vault. This is amazing. We've gone too far, guys. We have penetrated. How can we go further? "Let's buy the whole package."

That's basically what they're saying. Buy the whole package.

Because Marvel is a great integrated circuit manufacturer, so they can design, but they don't do everything inside the cabinet. So, you have to think about the cabinet, and then the cables.

Then Marvel makes the chips that collect or translate the light data, the data between the switches, but Marvel also has these custom integrated circuits.

So, Marvel says, "Look, we can do the graphics processing unit (GPU) work for you." We can perform digital signal processing in Marvel. This , as you know, is from the server to the switch.

We can make contact between the converters, which is our photonics chip . We could then buy Lumentum, which pumps light.

The processors are digital signal processors, by the way. These are the brains inside the optical units of the fiber optics, and Marvell You design it, right? Lumentum is a manufacturing company.

So, by acquiring Lumentum, Marvel will also gain manufacturing capabilities it doesn't currently possess, which is quite remarkable .

But personally, I think this is very interesting because Marvel... I was reviewing another Marvel interview as well. It was an older interview, but it gave me insight into the CEO's thinking. He believes the next...

The last fundamental analysis we did for Marvell in our session members' livestream was on October 5th.

So, this is Marvell's list of operations . And this is our earnings at Marvell. We have a 36% increase in net revenue. The cost of goods sold grew less than that, which means their pricing power has increased.

So, we have growing pricing power at Marvell. I'm very bullish on Marvell 's pricing power . I like them.

They also sold the automotive business, and they had free cash flow with a yield of only about 1.68% , which is low, but you still get some free cash flow . They also borrowed, and they issued a small amount of equity.

Marvell is moving into optics CPO. I wrote that I consider Marvell is Broadcom's devalued half-sister. It's a bit more expensive, which is ironic because I actually think Marvell is currently more expensive than Marvell.

But, I think I mean in terms of market capitalization. Okay? In terms of market capitalization, you're talking about $200 billion versus about $1 trillion for Broadcom. It could be more than that, maybe $1.5 trillion now.

I don't remember exactly. Anyway, when I say it's devalued , Broadcom is valued lower than Marvell.

But Marvell is the rising younger half-sister that's betting on optics, and this absorption of Light... Damn, this bothers me. No , actually, this is great. I'm very bullish on Marvell in this regard.

I'll buy Marvell stock on the dip because I want the combined company. I mean, I'll be very happy if this happens.

Even if we have to take a short-term loss, we want the whole package. We want lasers, we want CPUs, we already have DSCs, integrated circuits, and we have the connectivity to get inside a unit.

Nvidia. We have almost everything we need to be fully vertically integrated . This CEO acts just like Elon Musk. And I like this guy. I think he's more ambitious than the Broadcom CEO.

I think the Broadcom CEO is more conservative. And that increases execution risk . But I like this guy. I respect this guy. I respect this acquisition. I'm a big fan. And even though the company I own, Marvel, is going down because of this, and the company I wanted to buy, which slipped through my fingers, is going up because of this, I have to say this is all very cool . A big fan.