Overview
- Nvidia is investing $2 billion each in Lumentum and Coherent under separate long-term agreements centered on silicon photonics and optical interconnects.
- Both pacts include multibillion-dollar purchase commitments plus future access rights to production of laser and optical networking products.
- The companies say the capital will speed R&D and expand U.S. manufacturing, with Lumentum planning a new fabrication facility and Coherent scaling domestic output.
- Shares of Lumentum and Coherent rose sharply after the announcement, with gains reported around 7% to 14% as investors welcomed the supply-focused strategy.
- Nvidia frames photonics as critical to boosting bandwidth and cutting power in next-generation AI data centers, aiming to secure supply and reduce potential bottlenecks.