Nvidia’s progress in co-packaged optics, or CPO, is running ahead of market expectations, adding to investor focus on optical interconnect demand tied to AI data centers. Lumentum, seen as an important part of Nvidia’s advanced optics supply chain, was viewed as a likely direct beneficiary, with its shares up nearly 6%.
GF Securities said in its latest research note that Lumentum’s CPO laser revenue could rise from $427 million in 2027 to $750 million in 2028. Over the same period, near-packaged optics, or NPO, laser revenue is projected to increase from $501 million to $2.55 billion. The firm also reiterated its buy rating on the company.
Separately, Citi recently raised its target price on Lumentum from $1,200 to $1,400, reinforcing expectations for growth in the company’s AI optical communications business. The broader optical communications segment also moved higher to varying degrees. According to TradingBeats, the LITE perpetual contract on Hyperliquid was last quoted at $972, up about 6% over the past 24 hours.
BlockBeats reported on Sept. 30 that Nvidia’s rollout of co-packaged optics, or CPO, is advancing faster than the market had expected, drawing fresh attention to optical interconnect demand tied to AI data centers.
Lumentum, regarded as an important participant in Nvidia’s advanced optics supply chain, was seen as a potential direct beneficiary. Its shares were up nearly 6%.
Revenue projections for CPO and NPO lasers
In its latest research note, GF Securities said Lumentum’s CPO laser revenue is expected to increase from $427 million in 2027 to $750 million in 2028.
Over the same period, revenue from near-packaged optics, or NPO, lasers could climb from $501 million to $2.55 billion. GF Securities also reiterated its buy rating on the stock.
Citi raises target price
Citi recently lifted its target price for Lumentum from $1,200 to $1,400, adding to expectations for growth in the company’s AI optical communications business. The broader optical communications sector also posted gains of varying sizes.
Perpetual contract data on Hyperliquid
According to TradingBeats, the LITE perpetual contract on Hyperliquid was last quoted at $972, up about 6% over the past 24 hours.
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