The CEO of Lumentum, a key supplier of indium phosphide lasers for AI data centers, has warned of a severe upcoming shortage of this critical material. Demand from hyperscalers like Nvidia is skyrocketing, far exceeding current production capacity, which is already 30% below customer needs. Nvidia has invested billions in both Lumentum and its competitor, Coherent, to secure future supply, but even these two companies may struggle to meet the escalating demand for high-speed optical components. AI
IMPACT The escalating demand for AI compute is creating significant bottlenecks in the supply chain for essential optical components, potentially slowing down data center expansion.
RANK_REASON CEO of a major AI infrastructure supplier warns of a critical material shortage impacting AI data center build-outs. [lever_c_demoted from significant: ic=1 ai=0.7]
- AI data center
- Broadcom
- Cisco
- Coherent
- indium phosphide
- Jim Anderson
- Lumentum
- Marvell
- Michael Hurlston
- Nvidia
- silicon photonics
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