Good morning. QQQs +70bps after Friday’s finish to Red October. Oil -4% on reports that negotiations between Iran and U.S. continue to end the war and dialogue continue. Yields flattish.
In Tech, the MRVL -2%/LITE -4% deal officially on the tape (4.5 MRVL shares per LITE share) — still haven’t talked to many investors positive on the deal for either side. Semis 1.3% leading the way higher with strength in memory (SKHY +3.5% / MU +1.5%) and Neoclouds (CRWV/NBIS +2%). NVDA +1%. CRWD +3% on a DB upgrade; ORCL -1% on 6-part $10B Bond offering.
Overnight, Asia mixed but Korea up: TPX -0.88%, NKY -0.33%, Hang Seng +0.42%, HSCEI +0.56%, SHCOMP +1.08%, Shenzhen +1.94%, Taiwan TAIEX -0.65%, Korea KOSPI +2.24%. Hynix +4%/ Samsung +2%
Busy week for earnings. Finalizing some bogeys and we’ll start sending them out later today…
Let’s get to it…
LITE / MRVL: Marvell confirms to purchase LITE in an all-stock transaction at fixed 4.50 shares of MRVL for each share of LITE, “representing approximately $1,132 per share of LITE common stock. Deal closing 1H ‘2H. Call at 8am.
LITE/MRVL: Mizuho says potential deal creates optical powerhouse but drives scarcity winners + heavy MRVL dilution
Mizuho sees a LITE/MRVL combination creating a leading optical platform across EML/CW lasers, transceivers, OCS, DSPs and NPO/CPO, but also tightening supply and boosting pricing power for peers such as AVGO, CRDO, COHR, SEI and select China optical names. Downstream, NVDA/AMD/CIEN/NOK/ERIC/hyperscalers could face more concentrated laser/DSP supply. Financing is the key issue