Lumentum entered a nonexclusive, multiyear agreement with Nvidia focused on developing advanced optics technologies for AI infrastructure and next-generation systems. The deal includes multibillion-dollar purchase commitments and future capacity access rights for key laser and photonics components.

As part of the arrangement, Nvidia committed $2 billion to support Lumentum’s research and development efforts and to fund expansion of its manufacturing capacity. This capital infusion aims to accelerate production of high-speed optical modules critical for data center connectivity.

News of the investment and expanded long-term commitments drove LITE shares up approximately 7% in premarket trading. Investors view the partnership as a catalyst for revenue growth and strengthened positioning in the AI optical networking supply chain.