# Nvidia may accelerate co-packaged optics rollout, boosting Lumentum, GF Securities says

Digest AI · Hardware & Compute · published 2026-10-04T12:30:00Z

Canonical: https://digestai.news/story/nvidia-may-accelerate-co-packaged-optics-rollout-boosting-lumentum-gf

## Summary

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.

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.

## 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.

## Why it matters

Scaling co-packaged optics helps data centers move data between massive GPU clusters at higher speeds with less power, making component suppliers like Lumentum critical to future AI infrastructure.

## Sources

1. [Nvidia Just Gave Lumentum Stock a New AI Catalyst](https://finance.yahoo.com/markets/stocks/articles/nvidia-just-gave-lumentum-stock-193002314.html) (finance.yahoo.com, 2026-10-04)

## Cite

Digest AI, "Nvidia may accelerate co-packaged optics rollout, boosting Lumentum, GF Securities says", 4 October 2026, https://digestai.news/story/nvidia-may-accelerate-co-packaged-optics-rollout-boosting-lumentum-gf

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