Nvidia may accelerate co-packaged optics rollout, boosting Lumentum, GF Securities says
Nvidia is expanding co-packaged optics faster than anticipated, according to an estimate by GF Securities. The brokerage projects Nvidia's co-packaged optics switch shipments will hit 15,000 units in the fourth quarter of 2026, climb to 16,000 in early 2027, reach 30,000 by mid-2027, and total 100,000 units across 2027.
Key points
- GF Securities expects Nvidia co-packaged optics switch shipments to hit 15,000 units in Q4 2026 and 100,000 units throughout 2027.
- Lumentum's co-packaged optics laser revenue could rise from $427 million in 2027 to $750 million in 2028, according to GF Securities.
- Lumentum stock has gained more than 195% year-to-date in 2026 on rising demand for optical networking components in AI clusters.
This rapid adoption could serve as a growth driver for Lumentum, which manufactures laser chips and photonic components used in optical systems. GF Securities forecasts that Lumentum's revenue from co-packaged optics lasers could grow from $427 million in 2027 to $750 million in 2028.
Lumentum's share price has gained more than 195% year-to-date in 2026 amid rising capital expenditure on AI infrastructure. The transition to co-packaged optics aims to integrate optical components directly with semiconductor packages to raise data transmission speeds and cut power usage across expanding GPU clusters.
Nvidia Just Gave Lumentum Stock a New AI Catalyst
finance.yahoo.com · 4 October 2026
Loading the full article…
This text was published by finance.yahoo.com and written by Nauman Khan. It is reproduced here with attribution so you can read it in full; the rights remain with the publisher. Read it at the source ↗
The headline, key points and digest above were generated by Digest AI's editorial model from the linked sources. Automated summaries can contain errors: the sources are the record. Spotted a mistake? Tell us. Published by Martin K., who runs Digest AI and handles corrections.
More in Hardware & Compute
All →- Oura delays IPO as AI wearables face privacy backlash and design failures · 1 src
- Toshiba plans to double HDD production for AI data centers by FY2027 · 1 src
- SpaceX may lease AI compute to Microsoft for $150B deal · 2 src
- Strata runtime doubles Qwen3.8-Flash-Next speed on RTX 4070 · 1 src
- Meta releases open-source Muse Gadgets SDK and free Muse Home Link for U.S. subscribers · 6 src
Comments
via GitHub Discussions