Optical communications stocks gained in morning trading. Applied Optoelectronics rose 7%; Lumentum rose 4%; Coherent and Photonics & Optics ETF rose 2%; Nokia, Ciena, Amphenol, Credo Technology, and Corning rose 1%.

Lumentum CEO Michael Hurlston told Bloomberg Television in Tokyo that the company’s optoelectronic components are effectively sold out through early 2029, driven by insatiable demand from technology companies racing to build faster AI data centers.

Hurlston stated that Lumentum is unable to meet approximately 70% of demand for some of its products through next year, and cannot address roughly 30% of demand for certain other products through 2028 — a stark illustration of just how far supply lags behind hyperscaler appetite.

The comments represent a notable escalation: just six months ago, Hurlston had indicated the company was on track to sell out capacity by 2028, meaning the sold-out horizon has now extended by roughly a year.