Lumentum's CEO Michael Hurlston stated at the RAISE Summit that the supply gap for indium phosphide lasers used in optical transceivers exceeds 30% and could become more acute than the DRAM/NAND shortage. Lumentum's order book stretches to 2028, with 2028 capacity expected to sell out within two quarters, while China's export controls have pushed wafer prices up ~250%. Nvidia has invested $2 billion each in Lumentum and Coherent to secure capacity, indicating a structural bottleneck in AI data center interconnect buildout. For financial institutions, this suggests optical component supply constraints may delay hyperscaler AI infrastructure deployment, affecting capex timelines and related equity valuations.
150 other tracked developments touching the same claims.