A September 29, 2026, report from GF Securities says Lumentum's growth could accelerate as partner Nvidia rolls out co-packaged optics (CPO) faster than expected. The report says supply chain partners, including TSMC, are expanding testing capacity to support the ramp-up of next-generation AI hardware.
CPO can improve performance and power efficiency in AI data centers. GF Securities forecasts Lumentum's CPO laser revenue will reach $427 million in 2027. It projects revenue of $750 million in 2028.
The report expects even stronger growth from related near-packaged optics (NPO) technology. The projections underscore the strategic importance of Nvidia's $2 billion investment in Lumentum earlier this year to secure its optical components supply chain.