Closing Time: The AI megadeal Wall Street hated
CNBC reports that Marvell agreed to buy optical networking maker Lumentum in an all-stock deal that values Lumentum at $115 billion including debt, and shares of both companies fell sharply.
Good afternoon. One of the biggest deals in tech history landed this morning, and investors spent the day selling both companies involved. Here is what mattered today.
Marvell agreed to buy optical networking maker Lumentum in an all-stock deal that values Lumentum at $115 billion including debt, and shares of both companies fell sharply, CNBC reports.
Anthropic’s amended IPO filing puts its computing and data center commitments at about $895 billion, with roughly $70 billion due within the next year, according to Yahoo Finance.
Goldman Sachs has barred most of its traders and bankers from using AI coding tools such as Claude Code and GitHub, limiting them to engineers, Bloomberg Law reports.
Apple is working on a roaming home robot with a screen on a swiveling arm that could cost $1,000 or more, according to Ars Technica.
The AI megadeal Wall Street hated
Marvell designs custom chips for the biggest cloud companies, and Lumentum makes the lasers and optical parts that move data between the machines inside AI data centers. On Monday the two said they will combine, with Lumentum shareholders getting 4.5 Marvell shares for each share they own, CNBC reports.
The price tag is enormous. The deal gives Lumentum an enterprise value of $115 billion, or about $80 billion in equity, which TechCrunch calls one of the largest deals in tech history. Marvell chief executive Matt Murphy will run the combined company, and the companies expect to close in the first half of 2028 if shareholders and regulators sign off.
The bet behind it is simple to state. AI clusters keep getting bigger, and the links that tie thousands of chips together are becoming as important as the chips themselves. Putting electrical and optical connections under one roof lets Marvell sell customers a complete package, and it sharpens Marvell’s challenge to its larger rival Broadcom. Nvidia already has a stake in the idea, having invested $2 billion in each company earlier this year, according to TechCrunch.
Investors were not convinced. Marvell fell 12.7% and Lumentum dropped 18.6%, the two worst performers among the AI and tech stocks we track. Because the deal pays only in stock, a falling Marvell price shrinks what Lumentum holders get. At Monday’s close, 4.5 Marvell shares were worth about $771, well below the roughly $1,132 a share the companies cited, which was based on prices before deal talk surfaced in late October.
The timing made the reaction sharper. AI stocks are coming off a brutal week of worries about whether huge spending will pay off, and a deal that ties up two growth companies for more than a year asks investors to wait even longer for proof.
The bigger picture is that the race to build AI data centers is now pulling the supply chain together. Whether this deal works will depend on whether customers really want one company for the whole connection, and that answer will take far longer than one day of trading to arrive.
Elsewhere in AI today
Anthropic’s new filing shows how big its computing bill has become. The company listed about $895 billion in commitments, nearly all for computing and data centers, against about $132 billion in cash and short-term investments at the end of September, Yahoo Finance reports. Revenue rose to about $17 billion in the third quarter from $11.6 billion in the second, but Anthropic swung to a $567 million operating loss one quarter after its first operating profit.
Wall Street is rethinking who gets AI coding tools. Goldman Sachs updated its internal guidance in October to limit Claude Code and GitHub to engineers after reviewing productivity and risk, which has frustrated some traders who used the tools to model positions and track client flows, Bloomberg Law reports. A group of staff who mix trading, research and engineering is exempt.
Apple may be bringing a robot into the living room. The device would pair a large screen with a swiveling arm, cameras and sensors so it can follow people for FaceTime calls and turn on lights when someone walks in, Ars Technica reports, citing The Information. It is aimed at 2027, though delays could push it to 2028.
OpenAI is preparing a political push for after the midterm elections. The company’s chief global affairs officer, Chris Lehane, plans a campaign that pushes for mandatory “speed limits” on powerful AI systems and a plan to call data centers “AI compute campuses,” Axios reports.
Markets
AI and chip stocks slipped again on Monday after an early bounce faded. The Nasdaq fell 1.1%, the S&P 500 dropped 0.5% and the Dow rose 0.4%. The Philadelphia semiconductor index lost 3.4%. Of the 86 AI and tech stocks we track, only 13 closed higher.
The gainers were a mixed group. Tempus AI jumped 8.7%, Intuit rose 3.2% and Honeywell added 2.5%. Amazon gained 2.2% and Accenture rose 1.1%.
The deal led the losers list. Lumentum fell 18.6% and Marvell dropped 12.7%, and fellow AI connectivity chipmaker Astera Labs slid 11.2%. Satellite company AST SpaceMobile lost 11.3% and identity software maker Okta fell 11.2%.
Biggest winners
| Ticker | Name | Price | Day |
|---|---|---|---|
| TEM | Tempus AI | 78.48 | +8.67% |
| INTU | Intuit | 352.10 | +3.23% |
| HON | Honeywell | 223.77 | +2.49% |
| AMZN | Amazon | 245.63 | +2.20% |
| ACN | Accenture | 260.98 | +1.06% |
Biggest losers
| Ticker | Name | Price | Day |
|---|---|---|---|
| LITE | Lumentum | 684.40 | -18.59% |
| MRVL | Marvell | 171.41 | -12.72% |
| ASTS | AST SpaceMobile | 36.33 | -11.33% |
| ALAB | Astera Labs | 229.67 | -11.22% |
| OKTA | Okta | 184.87 | -11.22% |
Prices are Monday’s U.S. closing prices, November 2, 2026, versus Friday’s close. Market data is a snapshot, not live.
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