Lumentum optical components sold out through 2029, shortfall up to 70%

On October 9, 2026, Wall Street CN reported that Lumentum Holdings, an optical component maker backed by Nvidia, is facing a large capacity shortfall. CEO Michael Hurlston said in an interview with Bloomberg in Tokyo that the company's products are fully sold out through early 2029, as demand from AI data centers outpaces its ability to keep up. He said roughly 70% of demand for some products next year cannot be met, while other products still face a 30% shortfall through 2028. Hurlston noted that only half a year earlier he had expected capacity to sell out in 2028, meaning the timeline has moved forward by nearly a year. "We are completely sold out and see no end in sight," he told Bloomberg.

To handle the orders, Lumentum has over the past two years raised capacity at a key factory in the Tokyo metropolitan area to 12 times its original level, and plans to invest at least $350 million in that plant and adjacent facilities. Its factory in Caswell, UK, has also completed an expansion. The report said building optical component capacity is not something that can be done overnight.

The report also noted that analysts on average expect Lumentum's sales to more than double this year. Following the news, Lumentum shares rose 4% in pre-market trading, while Coherent gained more than 3%, and Corning, Ciena and Credo each rose more than 2%. Marvell Technology was up nearly 2%. The situation currently rests on the sell-out timeline and expansion plans disclosed in that report.