Overview
- The company set milestones of $1.25 billion in quarterly revenue within 9–12 months and $2 billion within 18–24 months, paired with non-GAAP margin goals of 46.5% gross and 35% operating initially, then 50.5% and 40%.
- Lumentum disclosed a multi-year, multibillion-dollar optical circuit switch contract with a single large customer whose identity was not revealed.
- Roughly half of Nvidia’s $2 billion investment will fund capacity expansion, including qualifying the Greensboro, North Carolina fab in 2027 and beginning production in early 2028 to supply ultra-high-power lasers, with full-scale capability supporting about $5 billion in revenue.
- Shares rose more than 10% following the OFC 2026 presentation, and Stifel reiterated a Buy rating with an $800 price target while it reassesses its financial model.
- Management estimated an optical AI market opportunity exceeding $90 billion by 2030 and highlighted growth pillars spanning cloud transceivers, optical circuit switching, and scale-out and scale-up co-packaged optics.