Why Shares of Cavium Inc. Jumped Today

Shares of semiconductor company Cavium Inc. (NASDAQ: CAVM) jumped on Monday following reports that Marvell Technology (NASDAQ: MRVL) was considering an acquisition. According to Reuters, the two companies are in advanced talks, and a deal could be announced in the next few weeks. At 11 a.m. EST, Cavium stock was up 9.5%, while Marvell's was up 10%.

Cavium's market capitalization now sits at about $5.2 billion, while Marvell is valued at just over $10 billion. A combination of the two companies would create a semiconductor company with around $3 billion of annual revenue.

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Source: Fool.com