Lumentum secured a $2 billion（約3200億円） multi-year partnership with Nvidia to supply optical networking technology for AI data centers, positioning the company as a key player in AI infrastructure.

What happened: Lumentum Holdings entered a new multi-year partnership with Nvidia backed by a US$2b commitment. The agreement focuses on optical networking technology for AI data centers, with the company highlighting near packaged optics (NPO) as an emerging product area targeting meaningful shipments next year.

Why it matters: Lumentum supplies optical and photonic components that handle high-bandwidth communications in AI-focused data centers. The Nvidia partnership places the company squarely in the AI infrastructure discussion rather than only in traditional telecom optics, signaling that demand for its solutions is accelerating as AI training and inference scale up.

What to watch: The stock currently trades at US$921.56, about 17% below the US$1,111 analyst price target and 38.5% below the platform's estimated fair value estimate. Execution on near packaged optics shipment timing next year and whether revenue and margins align with the AI data center buildout will be key to watch.