Lumentum Leaps Nearly 8% During AI Optics Boom

Core Viewpoint - The optics industry is experiencing significant growth driven by the increasing demand for high-speed interconnects in data centers, as traditional copper solutions face limitations [1] Industry Summary - The optics sector is poised for expansion due to the limitations of copper in terms of distance, data rate, and thermal constraints, leading to a shift towards optical interconnects [1] - Companies like Lumentum, Coherent, and Finisar have shown strong momentum and are expected to benefit from the upcoming data center expansion [1] - The sector presents opportunities for both primary and secondary investments, with companies that can meet demand likely to have pricing power amid supply constraints [1] Company Performance - Lumentum has seen a momentum increase of 595%, Coherent 249%, and Finisar 129% since a previous podcast discussion on optical stocks [1] - Lumentum's earnings call indicated a 30% inability to meet customer demand, highlighting the growth potential in the optics industry [1] - The cost curve for optical solutions is decreasing, making them more competitive against traditional copper solutions [1]