Shares of Lumentum Holdings Inc (NASDAQ:LITE) moved higher in U.S. premarket trading on Friday after reports indicated that surging demand from the artificial intelligence sector is expected to keep its order book filled through 2028.
Other companies in the optical components space also saw gains, including Coherent and Applied Optoelectronics, reflecting broader optimism across the sector.
In comments to Bloomberg News, the Nvidia-backed company’s CEO said Lumentum is experiencing rapidly increasing demand from major U.S. hyperscale data center operators, while still struggling to fully meet that demand.
Lumentum produces optical and photonic components used in communications and networking systems and is widely viewed as a leading player in the industry.
Demand for its networking solutions has surged in recent years as large technology firms ramped up investment in data center infrastructure, driving a roughly 1500% increase in the company’s share price over the past year.
Optical circuits and transceivers play a critical role in AI data centers, where ultra-fast data processing is essential.
Originally spun off from JDSU in 2015, Lumentum also received a $2 billion investment from Nvidia in early March 2026, alongside a multibillion-dollar purchase commitment tied to that deal.