Lumentum Posts Record Results on Strong AI Data-Center Demand

Lumentum is a major supplier of optical components and modules used in high-speed networks. Demand is accelerating as cloud operators build denser AI computing clusters and adopt 1.6-terabit transceivers to move data between servers and switches. Co-packaged optics, or CPO, places optical engines closer to switching chips, potentially reducing power consumption and signal loss. Its commercialization timeline is therefore a key indicator for equipment makers and the broader optical supply chain.

Lumentum said revenue and gross margin reached record highs in its latest results, though the cited report did not specify the revenue amount, as AI infrastructure spending fueled demand for 1.6T products. The company also said it expects to begin scaled CPO production in the second half of 2027, easing concerns that the technology’s rollout had been delayed. The update boosted optical-communications suppliers in Taiwan, with TrueLight shares hitting the daily 10% limit.

Lumentum Holdings Inc. (Nasdaq: LITE) supplies lasers, modules and optical subsystems that move data through cloud and AI networks. Its technology has become more strategically important as larger AI clusters require faster links with lower power consumption. The company’s position was reinforced on March 2, 2026, when NVIDIA agreed to invest $2 billion under multiyear arrangements covering advanced laser purchases, capacity access, U.S. manufacturing expansion, and research and development.

Nasdaq said on May 8, 2026, that Lumentum would join the Nasdaq-100 before trading opened on May 18, replacing CoStar Group Inc. Lumentum confirmed the addition on May 11, with Chief Executive Michael Hurlston calling it recognition of optics’ critical role in AI infrastructure as data-center speed and bandwidth rise. Shares jumped 16.6% that day. The company had also reported fiscal third-quarter revenue of $808.4 million, up 90.1% from a year earlier, and adjusted earnings of $2.37 a share.