Nvidia-Backed Lumentum Sells Out AI Optical Components Through 2027

Lumentum Holdings Inc., a key supplier of optical components backed by Nvidia, is experiencing explosive demand from U.S. hyperscalers for AI infrastructure, with its products sold out through at least 2027 and orders filling its books into 2028.^[1][2] CEO Michael Hurlston told Bloomberg that manufacturing capacity is expanding but has not yet matched this surge, driven by the need for high-speed optics in massive AI data centers.^[1]

This backlog underscores the booming AI sector, where companies like Nvidia rely on Lumentum's lasers and transceivers to connect thousands of GPUs efficiently using light-based photonics rather than traditional copper wiring.^[3][4] Hyperscalers—giant cloud providers building ever-larger AI "factories"—are snapping up components like 1.6-terabit optical chipsets and electro-absorption modulated lasers, essential for next-generation systems such as Nvidia's upcoming Vera Rubin architecture.^[2][5] As reported by Bloomberg, demand is accelerating, leaving Lumentum struggling to keep pace despite rapid production ramps.^[2][6]

The company's fortunes have soared alongside this AI frenzy. Lumentum shares have climbed dramatically this year—up as much as 1,500% in some accounts—fueled by a pivotal $2 billion investment from Nvidia in March 2026.^[1][3] That deal, part of Nvidia's broader $4 billion photonics push including a similar stake in Coherent, secured multi-billion-dollar purchase commitments and funded Lumentum's new U.S. fabrication facility in Greensboro, North Carolina.^[3][4] According to Nvidia's announcement and SEC filings, the cash infusion bought nearly 2.9 million preferred shares at $695.31 each, while enabling R&D in advanced optics like silicon photonics for energy-efficient AI networks.^[1][4]

Lumentum is betting big on this momentum, projecting $3.1 billion in revenue and over $30 in earnings per share by 2028, a leap requiring 23% annual growth from today's levels.^[2][3] The Greensboro fab, a 240,000-square-foot retrofit acquired from Qorvo, will produce indium phosphide-based lasers for AI data centers, adding over 400 U.S. jobs and ramping production by mid-2028 with state support.^[3] Hurlston emphasized the 20-year Nvidia partnership's expansion to multiple product lines, positioning Lumentum as a high-margin "light engine" supplier.^[1][4]

This matters profoundly for the tech ecosystem, as optical interconnects become critical for scaling AI beyond current limits—linking hundreds of thousands of GPUs while cutting energy use in sprawling data centers.^[4][5] Investors and analysts are watching closely, though some note risks from customer concentration among a few hyperscalers.^[3] Lumentum's shift from telecom cycles to AI mainstay could redefine the $25 billion high-speed optics market by 2028.^[2]

Looking ahead, expansion at the new fab and fulfillment of Nvidia's commitments will determine if sold-out orders translate to sustained revenue.^[3][6] Production ramps and innovations toward 3.2-terabit speeds by 2027-2028 loom large, as AI infrastructure buildouts accelerate globally.^[5] For now, Lumentum embodies the photonic pivot powering the AI revolution, with hyperscalers and their suppliers racing to meet unprecedented demand.^[1][2]