Key insights
- Lumentum, backed by Nvidia, reports strong AI-driven demand for its optical components, filling orders through 2028. This indicates sustained investment in AI infrastructure by hyperscalers, positively influencing semiconductor and technology sectors. The news suggests continued growth in AI-related capital expenditures and demand for enabling technologies, which could boost related US equities.
Investing.com-- Lumentum Holdings Inc (NASDAQ:LITE) said demand from the artificial intelligence industry for its optical components was on track to fill its order book through 2028, Bloomberg reported on Thursday.
The Nvidia-backed company is seeing accelerating demand from U.S. hyperscalers and is still facing difficulties in meeting demand, the Bloomberg report said.
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Lumentum manufactures optical and photonic products, specifically for communications and networking applications, and is regarded as a leader in the sector.
Demand for its networking products rose sharply in recent years as Wall Street’s biggest technology companies built out more data center infrastructure, sending Lumentum’s shares up some 1500% in the past year.
Optical circuits and transceivers are key components of AI data centers, given their need for superfast processing speeds.
Lumentum was spun off from JDSU in 2015, and received a $2 billion investment from Nvidia in early-March 2026. The investment also came with a multibillion-dollar purchase commitment from Nvidia.