Lumentum rises on faster Nvidia optics deployment

Investing.com -- Lumentum stock climbed 7.4% in morning trading on Tuesday, reaching $989.51, after GF Securities reaffirmed its Buy rating and noted that Nvidia's co-packaged optics deployment is moving ahead of market expectations.

GF Securities reported that TSMC has increased its CPO testing and inspection capacity by adding new equipment to support production growth. The firm forecasts Lumentum's CPO laser revenue will grow from around $427 million in 2027 to $750 million in 2028, with near-packaged optics revenue potentially hitting $2.55 billion in 2028.

Citi raised its price target on Lumentum to $1,400 from $1,200 while keeping a Buy rating, citing increased confidence in the company's revenue growth linked to AI infrastructure expansion.

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