Lumentum CEO Michael Hurlston identified near-packaged optics (NPO) as a major growth driver for AI data centers at the Mizuho Technology Conference on June 9.
Hurlston stated that NPO demand is accelerating faster than expected and may surpass the market for co-packaged optics (CPO). NPO technology places optical engines near processing chips to increase performance and reduce power consumption with less complexity than CPO.
Interest in NPO surged over the last two months among hyperscale customers developing custom AI chips. This emerging demand suggests Lumentum’s previous long-term revenue forecasts may be conservative.