Morgan Stanley: Marvell Technology's (MRVL.US) $115 Billion Acquisition of Lumentum Expected to Strengthen AI Optical Communications Advantage; Stock Overly Sold Off by the Market

Zhitong Finance APP has learned that a latest research report from Morgan Stanley points out that Marvell Technology's (MRVL.US) acquisition of optical communications equipment manufacturer Lumentum (LITE.US) for approximately $115 billion is a transaction with aggressive pricing and relatively high execution risk, but it is expected to help Marvell establish a stronger competitive advantage in the next-generation artificial intelligence (AI) optical interconnect market. Considering Marvell's good track record of successfully integrating multiple technology companies in the past, Morgan Stanley believes that the market's negative reaction to this transaction may be excessive.