Lumentum Price Target Rises to $900 as NVIDIA Invests $2 Billion
Rosenblatt analyst raised Lumentum’s price target from $580 to $900 after NVIDIA committed $2 billion in investment and purchase agreements for AI optics capacity. Global optical interconnect market projected to reach $67.14 billion by 2035 at a 13.9% CAGR, led by data centers, AI/ML acceleration and 5G deployments.
1. Analyst Boosts Price Objective
On March 3, Rosenblatt analyst Mike Genovese increased Lumentum’s price objective from $580 to $900 while maintaining a Buy rating, citing anticipated higher earnings driven by strategic agreements with NVIDIA.
2. NVIDIA Strategic Investment
NVIDIA agreed to invest $2 billion and sign multiyear purchase agreements for complex lasers and optical components, supporting R&D, capacity expansion and a new U.S. fabrication facility to accelerate AI infrastructure deployment.
3. Optical Interconnect Market Outlook
The optical interconnect market is forecast to reach $67.14 billion by 2035 at a 13.86–14.14% CAGR, with North America holding 36.2% share and Asia Pacific growing fastest at 14.99% CAGR, driven by hyperscale data centers, AI/ML initiatives and 5G rollouts.