Lumentum, a leading optical communications company that has received investment from Nvidia, stated that demand for its optical components from U.S. mega-scale artificial intelligence (AI) data centers is accelerating rapidly, with orders expected to be fully booked through 2028. The company is expanding production capacity as quickly as possible but continues to struggle to keep up with demand. Its stock, traded on Nasdaq, has surged more than 15-fold over the past year.

CEO Michael Hurlston said in an interview in Tokyo on Friday that capital expenditure from U.S. mega data centers is enormous and shows no signs of peaking. He noted that supply is increasingly falling short of demand, and within two quarters, the company's entire order book for 2028 is expected to be sold out. Hurlston mentioned that Lumentum is currently retrofitting existing electronics manufacturing facilities wherever possible, which allows new production lines to come online in half the time compared to building factories from scratch. He also revealed that the company plans to invest an additional $100 million in Japan, with the possibility of further increasing that amount to approximately $250 million.