Nvidia-Backed Lumentum Sold Out of AI Server Parts Till 2029
Michael Hurlston said demand for AI data center gear is running ahead of supply, with some products unable to meet 70% of demand through next year.
- On Friday, Lumentum Holdings CEO Michael Hurlston confirmed that optical components are "completely sold out" through early 2029, driven by intense artificial intelligence data center demand during an interview in Tokyo.
- A structural shift from copper wiring to optical interconnects within hyperscale data centers is tightening supply and strengthening pricing power for suppliers capable of delivering advanced equipment.
- Lumentum is unable to meet 70% of demand for some products through next year and cannot address 30% through 2028, despite receiving a $2 billion investment from Nvidia earlier this year.
- Following the report, Lumentum and Applied Optoelectronics shares each rose 7%, while Coherent Corp. climbed 5% and the Roundhill Photonics & Optics ETF gained 3%.
- Supply remains tight across high-speed transceivers, co-packaged optics lasers, and optical circuit switches, reinforcing pricing power for suppliers capable of maintaining production levels.
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13 Articles
The actions of Lummentum and other companies in the optical network sector advanced on the afternoon of Friday (9), in New York, after Michael Hurlston, CEO of the company, affirming that the company has practically sold all its optical component supply capacity by 2029 and that it will have difficulty meeting the demand in the coming years. Exclusive material for subscribers. To have full access, access the link of the material and register.
Optics Stocks Rally on Sold-Out Optical Capacity Through Early 2029: Applied Optoelectronics and Lumentum Surge 7%, Coherent Climbs 5%
Optical component makers just received a demand signal so strong it reversed weeks of profit-taking in a single morning session, and the company behind it says its order book now stretches years into the future.
The race among technology giants to build faster AI data centers has created a major bottleneck in the supply of critical optical components. Lumentum Holdings, a US-based world leader in optical and photonic technologies, is facing a challenge in the supply of artificial intelligence...
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