Expectations of Nvidia’s faster CPO (Co-packaged Optics) deployment have boosted the optical module sector, with Lumentum climbing nearly 6%.
51 minutes ago
Nvidia’s deployment of co-packaged optics (CPO) is progressing faster than market expectations, driving further growth in demand for optical interconnects in AI data centers. As a key player in Nvidia’s advanced optics supply chain, Lumentum is seen as a potential direct beneficiary. GF Securities’ latest research report projects Lumentum’s CPO laser revenue will rise from $427 million in 2027 to $750 million in 2028; over the same period, its near-packaged optics (NPO) laser revenue is expected to jump from $501 million to $2.55 billion, with the firm reiterating a "Buy" rating on Lumentum. Meanwhile, Citigroup recently raised Lumentum’s price target from $1,200 to $1,400, further boosting market expectations for growth in its AI optical communications business, leading to varying degrees of gains across the entire optical communications sector. According to TradingBeats monitoring, the LITE perpetual contract on Hyperliquid is currently trading at $972, up approximately 6% in 24 hours.
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