Lumentum Expands U.S. Capacity as AI Data Center Demand Grows

Lumentum is expanding U.S. manufacturing capacity for optical components used in AI data centers as demand for higher-speed and higher-bandwidth connectivity accelerates.

The company reported fiscal fourth-quarter revenue of $1.0063 billion for the quarter ended June 27, 2026, up from $480.7 million a year earlier. Full-year fiscal 2026 revenue reached $3.014 billion, compared with $1.645 billion in fiscal 2025.

Lumentum forecast fiscal first-quarter 2027 revenue of $1.225 billion to $1.275 billion.

Lumentum makes optical and photonic hardware that supports data transmission within high-performance computing facilities. Its products for AI infrastructure include advanced lasers and indium-phosphide technology for optical connections.

“As AI compute workloads increase in both speed and bandwidth, data center architects are turning to optical links as a primary means of connectivity,” Lumentum President and CEO Michael Hurlston said.

NVIDIA invested $2 billion in Lumentum on March 2, 2026, by purchasing 2,876,415 shares of Series A convertible preferred stock at $695.31 per share. The agreement also included a multibillion-dollar purchase commitment and rights to access future capacity for advanced laser components.

Lumentum has announced a new U.S. manufacturing facility for advanced indium-phosphide (InP) optical devices and lasers made with 6-inch wafers. The facility is intended to expand production of components for the world’s largest AI data centers.

“The new facility will significantly expand Lumentum’s manufacturing capacity leveraging 6-inch InP wafers,” Lumentum said in its announcement.