NEW YORK, December 30, 2025, 12:08 ET — Regular session
- Lumentum shares rose about 1.3% in midday trading after a sharp drop in the prior session.
- Optical-component peers were mixed, with Applied Optoelectronics and nLIGHT higher while IPG Photonics dipped.
- Investors are watching thin holiday liquidity and upcoming U.S. data releases for the next directional cue.
Lumentum Holdings Inc (LITE.O) shares rose 1.3% to $377.59 in midday trading on Tuesday, paring part of the prior session’s slide. The stock traded between $370.00 and $380.32, with about 800,000 shares changing hands.
The move comes as U.S. equities drifted in a narrow range in the final week of the year, with major index proxies little changed to lower. The SPDR S&P 500 ETF (SPY) was down about 0.1%, while the Nasdaq-100 tracker Invesco QQQ was nearly flat.
That backdrop matters for Lumentum because thin holiday trading can exaggerate intraday swings, even without company-specific headlines. “I wouldn’t try to make too much out of anything that happens in a holiday-shortened week and very light trading volume,” said Art Hogan, chief market strategist at B Riley Wealth, in a Reuters market report that also flagged the coming release of minutes from the Federal Reserve’s December meeting. 1
Lumentum fell 4.65% on Monday to close at $372.61, underperforming in a weaker session for U.S. stocks. IPG Photonics also slid 3.01% on Monday, while nLIGHT ended slightly lower, according to MarketWatch data. 2
On Tuesday, optical and photonics names traded unevenly. Coherent Corp (COHR.N) was little changed, Applied Optoelectronics (AAOI.O) rose about 1.7% and nLIGHT (LASR.O) gained about 1.1%, while IPG Photonics (IPGP.O) slipped roughly 0.5%.
Lumentum, based in San Jose, California, designs optical and photonic components used in telecom and cloud data-center networks, including for AI and data-center interconnect applications. Optical interconnect refers to high-speed links that move data between servers using light rather than electrical signals. 3
With few new company updates in the public record this week, traders have leaned on the broader “tape” — the market’s day-to-day flow — to set risk appetite for high-momentum technology suppliers. Moves in large-cap tech and any shift in rates expectations can spill into optical-component stocks, investors said.
For Lumentum specifically, investors are watching whether the stock can hold above Monday’s closing level and whether buyers show up on dips as liquidity returns after the holiday. A push back toward $380 would place Tuesday’s intraday high back in play, while another drop through $370 would put this week’s lows in focus.
The next major company-specific catalyst is its next quarterly report. Wall Street calendars list early February, with some services pointing to Feb. 5 as an estimate, though the company has not announced a date on those calendars. 4
Until then, Lumentum’s near-term direction is likely to hinge on year-end positioning, follow-through in optical and semiconductor-adjacent names, and how investors parse the Federal Reserve’s meeting minutes and other upcoming U.S. data.
