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Lumentum CEO Says AI Parts Sold Out Through Early 2029, Lifting Optical Stocks
Lumentum chief executive officer Michael Hurlston said the company's components are completely sold out through early 2029, sending shares of optical equipment makers higher. In an interview in Tokyo on Friday, Hurlston said Lumentum cannot meet about 70% of demand for some products through next year and will not be able to address 30% of demand for other products through 2028, according to Bloomberg. Just six months ago, Hurlston said Lumentum was on track to sell out its capacity by 2028. In premarket trading, Lumentum gained 3.76%, Applied Optoelectronics rose 4.83%, Fabrinet advanced 2.35%, Coherent climbed 3.15%, and Lightwave Logic added 1.57%. Lumentum, which received a $2B investment from Nvidia earlier this year along with rival Coherent, supplies advanced indium phosphide devices that help enable high-speed cloud computing and data transmission, and analysts on average expect its sales to more than double this year.
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Artificial Intelligence › AI Networking & Interconnect ▲Supply
LITE · Demand · Positive CEO said Lumentum's components are completely sold out through early 2029 and it cannot meet 70% of demand for some products.
AAOI · Demand · Positive Rose in premarket as Lumentum's sold-out AI optical component demand signals strong sector demand for optical equipment makers like Applied Optoelectronics.
COHR · Demand · Positive Climbed as Lumentum's sold-out AI parts through early 2029 points to robust demand across optical equipment peers, including Coherent.
FN · Demand · Positive Advanced on Lumentum's sold-out AI component capacity, signaling strong demand for optical manufacturing peers like Fabrinet.
LWLG · Demand · Positive Added 1.57% as Lumentum's sold-out AI optical demand lifted optical equipment stocks including Lightwave Logic.