New York, Jan 15, 2026, 14:35 EST — Regular session
- Lumentum shares climbed roughly 5% in afternoon trading, bouncing back after a steep decline the previous day.
- Barclays raised its price target to $365 from $181 but maintained an Equal Weight rating, according to a report. 1
- Investors are focused on the Feb. 3 earnings call, seeking clues on demand and margins linked to AI data centers. 2
Lumentum Holdings Inc shares rose 5.1% to $348.68 on Thursday, clawing back part of Wednesday’s losses as investors shifted focus back to high-beta AI infrastructure stocks.
This move is significant since Lumentum now serves as a quick indicator of spending on faster data links within data centers, where operators are replacing copper with optical equipment to handle growing AI workloads.
Risk appetite got a boost after weekly U.S. jobless claims dropped to 198,000, signaling layoffs are still low despite a slowdown in hiring. Initial claims track new unemployment benefit filings each week. 3
Barclays analyst Tom O’Malley nearly doubled Lumentum’s price target, lifting it to $365 from $181, while maintaining an “Equal Weight” rating, TheFly reported. Barclays highlighted the stock’s “proximity to the artificial intelligence theme” as the main catalyst for its performance this year. 1
Tech stocks found support following Taiwan Semiconductor Manufacturing Co’s announcement of record quarterly profits, driven by strong AI-related demand. 4
Lumentum dropped 8.22% in the last session, underperforming several photonics peers during a tough stretch for parts of the tech sector. 5
The California-based firm offers optical and photonic components for telecom and cloud networks, including gear that speeds up data transfer between servers and switches.
Mark your calendar for Feb. 3, when Lumentum unveils its fiscal second-quarter results and updates on orders, supply, and pricing — the key factors that usually move its stock. 2
That dynamic works in reverse, too. Following a turbulent stretch, even subtle signs that demand is leveling off or that margin pressure from competition or product mix is building can weigh on a stock priced for big things.
Traders will probably focus on analyst revisions and sector trends for the time being. The real driver, though, will be the Feb. 3 call and any guidance from management on AI-related demand heading into the next quarter.
