Goldman Sachs and Wells Fargo are at the center of several major technology deals this week, as companies continue to raise capital and pursue acquisitions linked to the artificial intelligence buildout.
Goldman is serving as a financial adviser to Marvell Technology on its planned acquisition of optical-components supplier Lumentum. The all-stock transaction was valued at $115 billion, including debt, when it was announced, making it one of the largest technology takeovers on record. Marvell expects the deal to close in the first half of 2028, subject to shareholder and regulatory approvals in multiple jurisdictions, including China.
The transaction could eventually provide a significant advisory-fee opportunity for Goldman, although banks generally receive much of that compensation only after a deal closes. Marvell CEO Matt Murphy said Monday that he was confident the required approvals could be obtained, while the outcome remains important to Goldman's eventual financial results.
The banks are also involved in financing the AI expansion through stock and bond offerings. Oracle filed Monday to sell $10 billion in common stock, with Goldman and Wells Fargo among the banks coordinating the offering. The two banks are also working on Microsoft's planned $25 billion debt sale, announced the previous week and expected to close Wednesday. It would be Microsoft's first major U.S. bond offering since the company raised $17 billion in 2017.
Goldman is additionally one of the lead banks on a large stock sale by Meta Platforms. The continued deal activity has supported bank results earlier this year, although the growing volume of new shares and bonds could create broader market concerns. For Wells Fargo, the transactions offer evidence that Chief Executive Charlie Scharf's efforts to expand the bank's capital-markets business are gaining traction.
The broader market attempted a modest recovery from the previous week's decline. The S&P 500 surrendered part of its afternoon gains after oil prices fell roughly 8% and the 10-year Treasury yield declined by about four basis points. Lower oil prices and bond yields helped several sectors, including banks, Boeing, Home Depot and transportation stocks FedEx and FedEx Freight, while semiconductor shares such as Micron and Intel remained under pressure.
Investors were also awaiting earnings from Apple, Palantir and Clorox after the market close. DuPont and Eaton were scheduled to report Tuesday morning alongside Pfizer, Keurig Dr Pepper, Shopify, Yum Brands and Apollo Global Management. Economic data due included job openings and labor turnover figures, factory orders and durable-goods orders.
Sources: CNBC Markets.