Lumentum Stock Leads Coherent as 200G Lasers Sell Out in…
By Tobi Opeyemi Amure
AI summary of the source article
A Deutsche Bank recap noted that Lumentum's advanced 200G lasers are sold out for the foreseeable future, commanding approximately double the average selling price of prior-generation equipment as data-center optics demand outpaces capacity. The supply constraint fueled market gains across the sector on October 1, with Lumentum rising 7.67% to $1,045.78, Coherent jumping 10.90% to $319.19, Ciena gaining 7.77%, and Corning advancing 4.33%. While component shortages create near-term pricing power for scarce lasers, the article notes that price premiums risk compressing once manufacturing output catches up with order backlogs.
Why it matters
A shortage in advanced optical components indicates that compute clusters risk stalling if interconnect hardware lags behind data-center demand. It also allows specific component manufacturers like Lumentum to command substantial pricing premiums.
Key facts
- Deutsche Bank analyst Gianmarco Paolo Conti stated Lumentum's advanced 200G lasers are sold out for the foreseeable future at roughly double previous-generation selling prices.
- Lumentum stock rose 7.67% to close at $1,045.78, bringing its year-to-date gain to 183.72%.
- Coherent, Ciena, and Corning shares also rose 10.90%, 7.77%, and 4.33% respectively during the same session.