NVIDIA Invests $40 Billion in Lumentum and Coherent for Next-Generation Data Center Optical Interconnects

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Summary

On March 3, 2026, NVIDIA announced a $40 billion strategic investment in Lumentum and Coherent, allocating $20 billion to each company. The funding will enhance R&D, manufacturing, and U.S. operations, including a new wafer fabrication facility for Lumentum. Both agreements include multi-billion-dollar procurement commitments and future production rights for optical interconnects. On-chain data indicates increasing interest in AI infrastructure, while the Fear & Greed Index reflects growing market optimism. Stock prices for both companies surged following the announcement.

According to 1M AI News, on March 3, NVIDIA announced long-term strategic partnerships with photonic device manufacturers Lumentum and Coherent, investing $2 billion each, for a total of $4 billion. Both investments will support the expansion of research and development, manufacturing capacity, and operations in the United States, with Lumentum planning to build a new wafer fabrication facility. The agreements are non-exclusive and include multi-billion-dollar procurement commitments along with rights to future production capacity for advanced laser and optical networking products.

According to CNBC, the stock prices of two photon companies surged after the announcement.

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