ME News reports that, as of September 30 (UTC+8), NVIDIA’s progress in co-packaged optics (CPO) deployment has outpaced market expectations, further fueling demand for optical interconnects in AI data centers. As a key participant in NVIDIA’s advanced optical supply chain, Lumentum is viewed as a direct beneficiary. GF Securities’ latest research report forecasts that Lumentum’s CPO laser revenue will rise from $427 million in 2027 to $750 million in 2028; during the same period, near-packaged optics (NPO) laser revenue is expected to increase from $501 million to $2.55 billion. The firm reaffirmed its “Buy” rating on Lumentum. Meanwhile, Citigroup recently raised its target price for Lumentum from $1,200 to $1,400, further reinforcing market expectations for growth in its AI optical communications business, with broad gains across the optical communications sector. According to TradingBeats monitoring, the LITE perpetual contract on Hyperliquid is currently trading at $972, up approximately 6% over the past 24 hours. (Source: BlockBeats)
NVIDIA's CPO progress boosts Lumentum shares by nearly 6%
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Summary
Lumentum shares rose nearly 6% as on-chain data shows NVIDIA’s CPO deployment is accelerating, boosting demand for AI data center interconnects. As a key supplier, Lumentum is expected to see CPO laser revenue increase from $42.7 million in 2027 to $75 million in 2028. NPO laser revenue could surge to $2.55 billion by 2028. Citigroup raised its price target to $1,400. Altcoins to watch may also benefit from broader gains in the optical sector.
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