Nvidia Pledges $2B Investment in Lumentum After Shares Jump 76% YTD
Chip leader Nvidia will invest $2B in Lumentum and commit multi-billion-dollar optical technology purchases to support AI data center buildouts. Lumentum shares have surged about 76% this year as analysts boost price targets to $900 and $800 after Q2 revenue rose 65.5% to $665.5M.
1. Nvidia Commits $2B Investment
Nvidia announced a $2 billion equity investment in Lumentum alongside multi-billion-dollar purchase agreements for its silicon photonics and optical transceiver technologies, aiming to overcome copper interconnect limits and accelerate AI data center expansion.
2. Share Rally and Analyst Upgrades
Lumentum shares have climbed roughly 76% year to date and nearly 10-fold over the past 12 months, prompting Rosenblatt to raise its price target from $580 to $900 and Stifel to lift its target from $480 to $800 while maintaining buy ratings.
3. Robust Q2 Financial Results
In fiscal second quarter, Lumentum recorded revenue of $665.5 million, up 65.5% year over year, and non-GAAP earnings of $1.67 per share, a 298% increase from $0.42, driven by strong demand for AI-focused optical solutions.