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Nvidia plans to invest approximately $2 billion in Lumentum Holdings to ensure the supply of high-performance laser and photonic components for its AI data centers. This investment is aimed at supporting the infrastructure necessary for the expansion of AI technologies, with components crucial for ultra-fast optical links in servers and hyperscale networks.

The deal includes multi-year purchasing commitments and will finance increased manufacturing capacity in the U.S. Lumentum reported a 65% increase in revenue to $665.5 million and turned a profit of $78.2 million, boosted by demand from data centers, with an order book exceeding $400 million for optical switches and co-packaged optics.