Lumentum Stock Rises After CEO Says AI Demand Has the Company Sold Out Through Early 2029

Lumentum Holdings Inc. (NASDAQ: LITE) shares rose 6.05% to $1,112.03 after CEO Michael Hurlston announced that the company's optoelectronic components are sold out through early 2029 due to strong demand from AI data centers. Hurlston stated that Lumentum is unable to meet approximately 70% of demand for some products through next year and 30% for others through 2028. The company is expanding its production capacity with a new facility in North Carolina and an expansion in Japan, but relief from the capacity shortfall is not expected until 2029 or 2030. Additionally, Lumentum benefits from a $2 billion investment from NVIDIA, and Stifel Nicolaus has raised its price target on the stock to $1,232.