NVIDIA-backed Lumentum: Optical component capacity orders already booked through 2029

Driven by tech companies racing to build high-speed AI data centers, Lumentum Holdings Inc.'s optical component capacity is almost entirely sold out, with orders booked through 2029. Earlier this year, Nvidia invested $2 billion each in Lumentum and its competitor Coherent. The company primarily makes advanced indium phosphide devices that support high-speed cloud computing and data transmission. Michael Hurlston, chief executive officer of the San Jose, California-based company, said in an interview in Tokyo on Friday that demand for some products will still be about 70% unmet next year, while some other products will face a 30% shortfall through 2028. Hurlston previously said the optical component maker's capacity is expected to be fully sold out by 2028. "We are running as hard as we can to add capacity as quickly as we can, but there's still a tremendous gap versus what customers want," Hurlston said. "We are sold out. I don't see a point of equilibrium."