Lumentum says optical component capacity fully booked through early 2029 amid AI demand
Lumentum Holdings CEO Michael Hurlston told investors that the company's optical communications capacity is completely allocated through early 2029, with a roughly 70% shortfall for some products in 2024 and a 30% gap for others through 2028. The firm disclosed that Nvidia invested $2 billion in Lumentum earlier this year and that Lumentum plans to spend at least $350 million to expand its Tokyo plant and other sites. Hurlston added that building new capacity takes three to five years, so the company is evaluating acquisitions to add missing capabilities.
Why it matters
The company’s statement indicates that supply will remain tight for AI data‑center builders, which could pressure downstream cloud providers and keep Lumentum’s sales growth strong, as analysts expect sales to more than double this year. The announced $350 million capex and potential acquisitions signal continued capital deployment to meet demand.
Key facts
- 1Lumentum’s optical component capacity is fully sold out through early 2029. finance.biggo.com
- 2Around 70% of demand for some products is unmet through 2024. finance.biggo.com
- 3Around 30% of demand for other products is unmet through 2028. finance.biggo.com
- 4Nvidia invested $2 billion in Lumentum earlier this year. finance.biggo.com
- 5Lumentum plans to invest at least $350 million in its Tokyo facility and adjacent sites. finance.biggo.com
- 6The company is considering acquisitions to add capabilities it does not currently have. finance.biggo.com
Summary written by AlphAI from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.