Lumentum CEO Says AI Data-Center Optical Parts Are Sold Out Through Early 2029

Lumentum’s optical components are completely sold out through early 2029, CEO Michael Hurlston said in an October 9 interview in Tokyo. Demand from companies building faster AI data centers is exceeding what the supplier can deliver, even after Nvidia committed $2 billion earlier this year to help fund research, operations and future manufacturing capacity.

The disclosure extends the timeline Hurlston described six months earlier, when he said Lumentum was on track to sell out its capacity by 2028. Bloomberg’s interview, published by The Japan Times, now places the sold-out horizon in early 2029 and quantifies demand the company expects to leave unmet.

Two shortages, different product groups

Hurlston said Lumentum cannot meet about 70% of demand for some products through 2027. For some other products, he expects the company to be unable to address 30% of demand through 2028. Those figures describe separate product groups and time periods—not a single shortage rate across Lumentum’s business, or a forecast that the same products’ shortfall will fall from 70% to 30%.

About 70%Some products, through 2027

Hurlston said Lumentum cannot meet about 70% of demand for some products through next year.

30%Other products, through 2028

For some other products, Hurlston said the company will be unable to address 30% of demand through 2028.

The components behind faster connections

Lumentum supplies advanced indium phosphide devices used in high-speed cloud computing and data transmission. These are optical components that help move data, rather than the processors that perform AI calculations. Hurlston tied the demand to technology companies seeking faster AI data centers, putting the strain on connectivity hardware within that buildout.

Nvidia’s March partnership announcement identified optical interconnects—the technology connecting systems through optical links—and package integration as critical to scaling AI infrastructure. It said those technologies can improve the energy efficiency and resilience of large AI networks. That was the companies’ stated rationale for investing in optics.

Capacity funding came with supply rights

The March 2 agreement went beyond Nvidia’s investment. The nonexclusive partnership included a multibillion-dollar purchase commitment and future capacity access rights for advanced laser components. Nvidia therefore paired financial support for the supplier with a commitment to buy components and rights to access future capacity; the arrangement was not described as an exclusive supply pact.

Nvidia said its $2 billion investment would support research and development, future capacity and operations as Lumentum built out U.S. manufacturing capabilities in a new fabrication facility. Hurlston also said in that announcement that Lumentum was investing in a new facility to increase capacity and accelerate innovation.