Lumentum AI Components Sold Out Through Early 2029

Lumentum Holdings Inc. announced that its manufacturing capacity for optical components used in AI servers is completely sold out through early 2029. The company is seeing intense demand from major technology firms expanding their data center footprints and transitioning toward higher-value products, including 1.6T transceivers and 200G laser modules.

CEO Michael Hurlston stated that the company is currently unable to meet customer demand and is investing in production capacity at its facilities in Japan. Hurlston noted that the company is "very, very far behind what customers want" and is considering acquisitions over the next year to further expand its product offerings.

Shares of Lumentum rose 7% following the announcement, contributing to a broader rally in photonics and optical networking stocks. While the company's stock has faced recent pullbacks due to rising interest rates and market volatility, management expects multi-year customer commitments and expanded capacity to drive free cash flow growth and margin expansion. Lumentum's stock value has approximately tripled this year.