Lumentum shares rose more than 6% on Friday after chief executive Michael Hurlston told Bloomberg that the optical-components maker's production capacity is fully booked through early 2029.
The San Jose-based photonics company makes lasers, optical modules and related components that move data at high speed inside AI data centres, where dense clusters increasingly require faster, more energy-efficient connectivity than standard copper cabling can provide.
Hurlston said Lumentum expects to be unable to meet as much as 70% of demand for most of its products in 2027, with shortages persisting into 2028 for specific components.
Six months ago, management expected full capacity utilisation only through 2028.
Outlook shifts
Lumentum's fourth-quarter revenue rose 23% sequentially to $1.01 billion, and the company guided first-quarter fiscal 2027 revenue to a midpoint of $1.25 billion, reaching a previously stated target more than a quarter ahead of schedule.
It has expanded its Sagamihara, Japan facility's capacity twelvefold over two years, yet still cannot close the gap between orders and output..
