LITE, COHR, AAOI surge as Lumentum CEO says AI parts sold out through early 2029

• Shares of optical equipment manufacturers surged after Lumentum (LITE) said its components are “completely sold out” through early 2029, driven by strong demand from tech companies racing to build faster AI data centers.
• Lumentum is unable to meet about 70% of demand for some products through next year, and won’t be able to address 30% of demand for some other products through 2028, chief executive officer Michael Hurlston said in an interview in Tokyo on Friday, according to Bloomberg.
• Just six months ago, Hurlston said Lumentum was on track to sell out its capacity by 2028.
• Among the movers, Lumentum (LITE) gained 3.76%, Applied Optoelectronics (AAOI) rose 4.83%, Fabrinet (FN) advanced 2.35%, Coherent (COHR) climbed 3.15%, and Lightwave Logic (LWLG) added 1.57% in premarket trading.
• Lumentum (LITE), which received an investment of $2B from Nvidia (NVDA) earlier this year along with rival Coherent, supplies advanced indium phosphide devices that help enable high-speed cloud computing and data transmission. Analysts on average expect Lumentum’s sales to more than double this year.
• Lumentum (LITE) carries a Hold rating from Seeking Alpha’s quant ratings, with a score of 3.49, while Wall Street analysts maintain a Strong Buy consensus rating, with a score of 4.50.

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