Lumentum’s optical components are in high demand from US hyperscalers, resulting in products sold out through 2027 and an order book extending into 2028. This backlog underscores the company’s critical role in AI data center infrastructure as data volumes between GPU clusters soar.

In early March 2026, Nvidia committed $2 billion in equity alongside a multibillion-dollar purchase commitment for ultra-high-power lasers and next-generation optical interconnects. This strategic partnership accelerates Lumentum’s capacity expansion and supports its roadmap for advanced photonic solutions.

Lumentum reported fiscal Q2 revenue of $665.5 million, a 65.5% increase year-over-year, reflecting robust AI-related sales. Management guided Q3 net revenue between $780 million and $830 million, supported by an OCS backlog exceeding $400 million, indicating continued growth momentum.

Shares recently climbed 2.8%, touching a record intraday high of $960 before settling near $919, up 139.8% year-to-date and 1,522.6% year-over-year. Elevated short interest at 16.2% of available float and an SOIR in the 88th percentile suggest potential for a short squeeze.