Lumentum Holdings Inc. (NASDAQ:LITE) shares are trading higher Friday after CEO Michael Hurlston said the company’s optoelectronic components are effectively sold out through early 2029.
- Lumentum shares are climbing with conviction. Why is LITE stock surging?
Lumentum Says It Can’t Meet Much of AI Data Center Demand
Hurlston made the comments in an interview with Bloomberg Television in Tokyo, citing strong demand from technology companies racing to build faster AI data centers. He said Lumentum is unable to meet roughly 70% of demand for some of its products through next year, and cannot address about 30% of demand for certain other products through 2028.
The remarks mark a notable extension. Six months ago, Hurlston had indicated the company was on track to sell out its capacity by 2028, so the sold-out horizon has moved out by about a year.
New Capacity Isn’t Expected to Bring Relief Until 2029 or 2030
To address the shortfall, Lumentum has added a fabrication facility in Greensboro, North Carolina, and is expanding capacity at a second fab in Japan. Hurlston cautioned that new laser capacity takes about three years to reach customers, which places meaningful relief no earlier than 2029 to 2030.
Lumentum also continues to benefit from a $2 billion strategic investment from NVIDIA, and Stifel Nicolaus recently raised its price target on the stock to $1,232.
Lumentum Shares Race Higher
LITE Price Action: At the time of writing, Lumentum shares are trading 6.05% higher at $1,112.03, according to data from Benzinga Pro.
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