Optics stocks rise after Lumentum CEO says demand is strong with “no end in sight”
Lumentum rose more than 5% in premarket trading on Friday, and lifted its competitors with it, after the company’s CEO told Bloomberg that demand for its optical components is through the roof.
Chief Executive Officer Michael Hurlston told the outlet Friday that the company is “falling further and further behind the demand” and would be sold out through all of 2028 within two quarters.
“The capex numbers from the US hyperscalers are enormous and there seems to be no end in sight,” he said.
The comments also bolstered Lumentum’s peers, with Applied Optoelectronics and Coherent also in the green in early trades this morning.
These companies make optical components that use light, rather than traditional copper interconnects, to move data within and between servers in data centers, a technology increasingly seen as critical for scaling artificial intelligence capacity.
Earlier this month, Nvidia said that it would invest $2 billion apiece in Coherent and Lumentum to develop their advanced optics technologies.
“The capex numbers from the US hyperscalers are enormous and there seems to be no end in sight,” he said.
The comments also bolstered Lumentum’s peers, with Applied Optoelectronics and Coherent also in the green in early trades this morning.
These companies make optical components that use light, rather than traditional copper interconnects, to move data within and between servers in data centers, a technology increasingly seen as critical for scaling artificial intelligence capacity.
Earlier this month, Nvidia said that it would invest $2 billion apiece in Coherent and Lumentum to develop their advanced optics technologies.
