Lumentum Targets 2027 CPO Ramp as AI Demand Lifts Optics

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.