Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Revenue surged 109% year-over-year, driven by a secular shift toward optical links for AI compute workloads in data centers.
Non-GAAP gross margin exceeded 50% significantly ahead of schedule, proving that differentiated technology commands premium value even before reaching the $2 billion quarterly run rate target. The company is successfully navigating supply chain constraints in Optical Circuit Switching (OCS) to meet steep demand, doubling shipments sequentially. Management attributes outsized operating leverage to tight cost controls and a product mix increasingly weighted toward high-value AI components.
Lumentum is expanding its laser chip strategy to include CW lasers for 200G per lane applications, leveraging superior manufacturing yields to command price premiums. The network capacity required to connect just two AI data center sites for a major hyperscaler could double the total global backbone capacity built over the last decade. Q1 fiscal 2027 guidance reaches the $1.25 billion revenue target more than one quarter ahead of the original plan due to sharp AI revenue acceleration.
Management expects a fourfold increase in pump laser shipments over the next several quarters to meet escalating demand for scale-across applications. High-volume shipments for scale-up CPO applications are projected for the second half of calendar 2027, ahead of customer deployments in 2028. The company anticipates 1.6T transceiver uptake to intensify in fiscal Q1 and sustain through calendar 2027, driven by Tier 1 hyperscale custom AI clusters.
Capacity expansion is underway at indium phosphide wafer fabs in Japan to capture upcoming 200G and 300G lane speed opportunities. The company proactively equitized $1.1 billion in convertible notes, reducing outstanding debt by approximately 35% but resulting in a one-time non-cash GAAP charge of $7.8 billion. A new supply agreement with AXTI for indium phosphide substrates was secured to address a surprise surge in ultra-high-powered laser demand.
Lumentum secured multiple long-term customer agreements for pump lasers, including take-or-pay structures, to help offset planned capital expenditures. The conversion of the Greensboro fab from gallium arsenide to indium phosphide is on track for first revenue in early 2028. Nvidia-level potential. 30M+ investors trust Moby to find it first.
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