Lumentum sold out of AI server parts till 2029 (www.japantimes.co.jp)

Lumentum Holdings has announced that its optical components are completely sold out through early 2029, driven by surging demand from tech companies for faster AI data centers. CEO Michael Hurlston revealed that the company is unable to meet about 70% of the demand for specific products this year, with a staggering 30% shortfall expected to persist through 2028 for other items. This marks a significant increase in demand compared to just six months ago when Lumentum anticipated selling out by 2028. The company’s advanced indium phosphide devices are crucial for high-speed cloud computing and data transmission, making them essential for AI applications. Lumentum's recent $2 billion investment from Nvidia, alongside competitor Coherent, highlights the strategic importance of these optical technologies in the AI/ML landscape. As analysts project Lumentum’s sales to more than double this year, the supply shortage underscores the urgent need for scaling optical technology production to meet the growing demands of AI infrastructures.