# Lumentum could outpace Nvidia and AMD as AI stock in November

Digest AI · Hardware & Compute · published 2026-10-28T17:00:00Z

Canonical: https://digestai.news/story/lumentum-could-outpace-nvidia-and-amd-as-ai-stock-in-november

## Summary

Lumentum Holdings designs and builds high‑speed optical networking components, data‑center interconnect solutions, and optical switches that move massive data volumes in AI clusters. The company is poised to benefit from a growing bottleneck: AI chips can process data quickly, but they need rapid data transport, driving strong demand for optical transceivers.

Consulting firm McKinsey estimates that production of high‑speed optical transceivers will fall short of demand through 2029. For example, supply of 1.6 Tbps transceivers could be 30%‑40% below demand, while demand for 800‑Gbps units may be 40%‑60% higher than supply through 2027. This shortage is pushing prices up and boosting Lumentum’s margins. The company will release its fiscal 2027 first‑quarter results after the market closes on Nov 5, fueling speculation that it could outpace larger rivals Nvidia and AMD in the AI‑infrastructure space.

## Key points

- Lumentum designs high‑speed optical networking components for AI data‑center clusters
- McKinsey estimates transceiver supply could lag demand by 30‑40% for 1.6 Tbps units through 2029
- Lumentum will report fiscal 2027 Q1 results after market close on Nov 5, fueling stock speculation

## Why it matters

Optical networking is becoming the next bottleneck for AI training; shortages and rising prices could boost margins for suppliers like Lumentum, influencing AI‑related stock performance.

## Sources

1. [Not Nvidia. Not AMD. This Is the Best Artificial Intelligence (AI) Stock to Buy in November](https://finance.yahoo.com/technology/ai/articles/not-nvidia-not-amd-best-063502292.html) (finance.yahoo.com, 2026-10-28)

## Cite

Digest AI, "Lumentum could outpace Nvidia and AMD as AI stock in November", 28 October 2026, https://digestai.news/story/lumentum-could-outpace-nvidia-and-amd-as-ai-stock-in-november

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