April 13 news: Recently, Lumentum CEO Michael Hurlston stated in a public setting: "The capital expenditure of. hyperscale cloud service providers is massive, and it seems to have no end in sight. Our capacity is increasingly unable to keep up with demand. At the current pace, our capaill be fully booked for the next two quarters, extending all the way to the end of 2028."

It is understood that Michael Hurlston had previously stated that ty's capacity was booked through the end of 2027. This reflects the market's expectation that demand for equipment used in AI data centers will remain strong.

"You can'tthe pressure the team is under to expand capacity. All U.S. hyperscale cloud service providers want to know how many units we can produce this quarter, next quarter, and the qr after that, because this is indeed the current bottleneck of the industry," Michael Hurlston emphasized.

To meet this surge in demand, Lumentum continues to expand capacity and has alreay completed 40% of its expansion target. Additionally, the company's management stated that while continuing to expand production at its main wafer fab (Sagamiha, Japan), Lumentum is working to increase utilization at other facilities (Caswell, UK; Takao, Japan) and is actively evaluating the possibility of increasing wafer fab capacity through acqtions or new construction.

On March 2, 2026, NVIDIA announced the conclusion of multiple multi-year strategic agreements with Lumentum, with the objective of accelerating innovation in advanced optical togies. These agreements encompass research and development collaborations designed to support the development of next-generation artificial intelligence infrastructure and system design. Concurrently, NVIDIA will invest $2 billion inm to support the company's research and development, future production capacity, and operations as it establishes new facilities and expands domestic manufacturing capabilities in the United States.

Notably, in ate March 2026, Lumentum announced plans to construct a new manufacturing facility in Greensboro, North Carolina, USA, with mass production anticipated to commence in the iddle of 2028.

Lumentum supplies advanced InP devices, and as optical interconnects are increasingly recognized as the preferred networking technology for future advanced cloud computing clusters, the com stock price has risen approximately 15-fold over the past year.