Optical Stocks Rally as Lumentum Capacity Sold Out Through 2029

Key Facts

Optical component stocks rallied following signals that Lumentum Holdings' production capacity is sold out through early 2029. 247wallst.com reported that the surge is driven by massive demand for AI infrastructure, leading to a supply shortage that provides long-term revenue visibility for key manufacturers.

Shares in the sector reached significant levels, with LITE closing at $1048.6 on October 8, 2026, while COHR closed at $302.35 on the same date. AAOI closed at $105.9 on October 8, 2026, as investors reacted to the persistent demand for optical networking components essential for AI data centers.