Lumentum Gets Boost from Faster-than-Expected Nvidia Co-Packaged Optics Growth

Nvidia's (NVDA) co-packaged optics scale-out is occurring faster than expected, according to GF Securities. This development should have a positive impact on supplier Lumentum (LITE).

GF Securities analyst noted that Taiwan Semiconductor Manufacturing Company (TSMC), which supports the ramp of Nvidia's co-packaged optics, has expanded its capacity for testing and inspection equipment.

This move is in response to the increasing demand for Nvidia's co-packaged optics technology. Lumentum Holdings Inc. (LITE) should benefit from this development as it supplies components for Nvidia's co-packaged optics.