Marvell Technology Is Acquiring Lumentum. Why Does the Market Hate the Move?

Marvell Technology (NASDAQ:MRVL) just announced a huge move. It's acquiring Lumentum Holdings (NASDAQ:LITE) in a deal that values the tech company at a whopping $115 billion, based on implied enterprise value. It's a move that will expand the company's growth opportunities in artificial intelligence (AI) and bolster its total addressable market to $550 billion.

But the tech stock is down sharply on the news, hitting levels it hasn't seen in several months. Why does the market not appear to like this move, and could buying Marvell's stock on the dip be a good idea right now?

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