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Lumentum says some optical capacity is sold out through early 2029 as AI demand outruns supply. October 10, 2026 / SemiMedia / - Lumentum Holdings said some of its optical component capacity is effectively sold out through early 2029 as AI data center expansion and rising demand for high-speed optical connectivity continue to outpace supply. CEO Michael Hurlston said the company is still far behind customer demand despite aggressive capacity expansion. For some products, around 70% of demand could remain unmet next year, while other product lines may still face a roughly 30% shortfall in 2028. Lumentum supplies indium phosphide and other advanced optical components used in high-speed cloud and data center networks. As GPU clusters become larger, demand for 800G, 1.6T and next-generation optical links is increasing rapidly, making lasers, modulators and related photonic components a critical part of AI infrastructure. To increase supply, Lumentum has expanded capacity at its core manufacturing site in the Tokyo area by about 12 times over the past two years. The company plans to invest at least $350 million in that site and adjacent facilities while also increasing production at its Caswell operation in the United Kingdom. New optical manufacturing capacity, however, takes time to build. Hurlston said adding major new production capability can require three to five years, limiting how quickly suppliers can respond to the current increase in AI infrastructure demand. Hyperscale cloud companies are increasingly helping suppliers manage that risk through long-term commitments and capital support. Lumentum said some customers are willing to share part of the investment burden in order to secure future optical component supply. The shortage highlights how AI infrastructure constraints are spreading beyond GPUs, HBM and advanced packaging into optical connectivity. Lumentum expects annual sales to more than double this year and is also considering acquisitions to add further capabilities over the next year. Sumitomo Bakelite to Invest ¥10 Billion in China and Singapore Chip Packaging Material Capacity Infineon Completes C2i Semiconductor Acquisition to Expand AI Data Center Power Technology

Lumentum CEOs fiscal 2026 compensation falls 44%. By RICHARD CRAVER, News & Record, Greensboro, N.C. The Tribune Content Agency October 9, 2026 4:16 AM Gift Article The fiscal 2026 compensation for Michael Hurlston, Lumentum Holdings Inc.'s chief executive, dropped by 44.4% as the value of his stock awards fell by more than 50%. Lumentum, based in San Jose, Calif., is a global equipment supplier to large-scale data centers. It entered the Triad business market in February when it paid $18 million to purchase a former Qorvo Inc. semiconductor plant in Greensboro. Lumentum has pledged to preserve and create more than 400 jobs and spend more than $600 million on capital investments at its 236,475-square-foot facility at 7098 Piedmont Triad Parkway. As of August, it has hired at least 150 former Qorvo employees. Lumentum reported in a regulatory filing Wednesday that Hurlston, the company's CEO, received $15.39 million in total compensation for fiscal 2026. That was down from $27.67 million in fiscal 2025. In both fiscal years, Hurlston's largest compensation component was the value of stock awards on the date they were awarded. The value typically is measured over three years and requires the executive to meet certain vesting eligibility requirements to receive the full amount. For fiscal 2026, Hurlston's stock awards were valued at $12.29 million, compared with $24.74 million in fiscal 2025. Hurlston's base salary rose nearly threefold from $315,000 to $900,000. His incentive pay jumped from $603,353 to $2.18 million. He did not receive a bonus in fiscal 2026 after a $2 million bonus in fiscal 2025. For fiscal 2026, Lumentum had a loss of $6.93 billion when including the debt extinguishment and $782.3 million in net income when excluding the debt payoff. Hurlston's CEO pay ratio to the median Lumentum employee was $1,478 to $1 based on a $10,412 annual compensation. Median is defined as the middle value in a list of numbers. Median employee compensation factors in regular pay, overtime, bonuses, incentives, allowances and paid time off. Wajid Ali, chief financial officer, was paid $556,000 in base salary, $1.03 million in incentive pay and total compensation at $8.91 million, up 83.8%, Wupen Yueni, president of Global Business Units, was paid $504,000 in base salary, $938,952 in incentive pay and total compensation of $8.91 million, up 65.2%. Vincent Retort, executive vice president of Global Reliability and Quality, was paid $556,000 in base salary, $1.03 million in incentive pay and total compensation of $7.53 million, up 32.8%. Jae Kim, general counsel and secretary, was paid $450,000 in base salary, $628,763 in incentive pay and total compensation of $4.86 million, up 90.4%. Lumentum will hold its 2026 shareholders meeting at 11 a.m. Nov. 18. There are no shareholder proposals on the agenda.

Lumentum stock rises 6% as AI demand fills optical orders through 2029. Shares of Lumentum Holdings LITE rose 6% in pre-market trading on Friday after Chief Executive Officer Michael Hurlston said demand for the company's optical components had exceeded available supply, with orders booked through early 2029. The company is struggling to keep pace with demand from technology firms expanding artificial intelligence data centres. Hurlston told Bloomberg News in an interview in Tokyo that Lumentum was unable to meet a significant portion of customer demand and was working to expand production capacity. Lumentum orders sold out amid AI data centre demand. Hurlston said Lumentum's optical components were "completely sold out" through early 2029, adding that customers were already beginning to secure orders for 2030. The company cannot meet around 70% of demand for some products through next year and expects to fall short of 30% of demand for certain other products through 2028, he said. Lumentum supplies advanced indium phosphide devices used in high-speed data transmission and cloud computing. Its technology is becoming increasingly important as AI workloads require faster connections between servers, data centre racks and computing systems. The company's products include lasers that encode data onto light near chips, reducing the distance that high-speed electrical signals need to travel. Optical connections can also reduce power consumption and heat generation compared with conventional copper-based interconnects. Hurlston said the opportunity could expand significantly as optical technologies move closer to AI accelerators. Demand for lasers in next-generation AI systems is expected to gain traction around 2029, he added. Nvidia investment supports expansion plans. Lumentum received a $2 billion investment from Nvidia earlier this year, alongside a similar investment in rival Coherent. The funding highlights the growing importance of optical technologies to AI infrastructure. To meet demand, Lumentum has increased capacity at its Sagamihara facility in Japan twelvefold over the past two years. The company plans to invest at least $350 million in the site and a neighbouring facility, with $75 million deployed so far. It has also expanded capacity at its plant in Caswell, England. Hurlston said Lumentum was considering purchasing a facility in Japan and could seek subsidies to support further expansion. The company may also need to consider an acquisition over the next year to broaden its product range. However, increasing manufacturing capacity takes time. Hurlston said building new production facilities typically requires three to five years. He added that hyperscalers were willing to provide funding commitments that could help suppliers manage some of the risks associated with rapid expansion. Optical stocks gain as AI infrastructure spending grows. Lumentum and other optical component makers have benefited from the broader AI infrastructure investment boom, although concerns about rising costs, debt and competition have made some investors more cautious. The company's shares have gained 171% year to date. Coherent shares have risen 55%, while Applied Optoelectronics has advanced 66%. Analyst sentiment on Lumentum remains positive overall. According to TipRanks data, 14 of 18 analysts covering Lumentum rate it a Buy, while the remaining four rate it a Hold. Supply constraints could also affect the sector if the US restricts new Chinese optical transceiver models. Chinese manufacturers account for roughly two-thirds of global high-speed AI optical transceiver supply, according to Counterpoint Research. Hurlston said the US would need to balance national security concerns against the risk of disrupting supply chains. Meanwhile, Lumentum faces the challenge of expanding production quickly enough to serve customers as demand for AI infrastructure continues to grow. The post Lumentum stock rises 6% as AI demand fills optical orders through 2029 appeared first on Invezz.