Breakfast News: Did Nvidia Just Favor Marvell?
Nvidia’s likely role in the Marvell-Lumentum deal, AI stocks hit by midterms, and more…
On June 18, Nvidia's CEO Jensen Huang praised Marvell Technology, predicting it could become a trillion-dollar company. Just five months later, on January 12, Marvell announced its intention to acquire Lumentum in a $115 billion all-stock deal. Both Marvell and Lumentum are considered Fool recommendations, and the combined entities will be held indefinitely.
Marvell designs chips that work with Lumentum's lasers, which are essential for AI data centers where data is transmitted via light instead of electricity. The deal provides Marvell with a stockpile of laser supplies. The Motley Fool believes Nvidia played a role in bringing these two companies together, as a robust Marvell could serve as a powerful counterbalance to Broadcom.
The upcoming merger announcement will disclose all discussions leading to this deal, including potential Nvidia involvement.
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