New York, February 6, 2026, 11:20 (EST) — Regular session
Shares of Lumentum Holdings Inc (LITE) climbed 3.7% to $523.28 in late-morning trading Friday, after bouncing between $499.49 and $556.71 earlier in the session. The stock closed Thursday at $504.42.
Lumentum remains at the center of a trade driving funds into the hardware powering AI data centers. As AI clusters speed up, demand for optics—the lasers and high-speed parts shuttling data between racks—has surged, with investors closely watching company guidance.
Lumentum has been pushing optical circuit switches that route traffic using light instead of electricity, alongside co-packaged optics that place optical engines right beside processors to reduce power use and heat. Traders are waiting to see if these products shift from pilot runs to steady shipments—because that’s when forecasts get adjusted.
Coherent climbed 5.1%, Broadcom jumped 5.4%, and Ciena rose 1.5%, underpinning strength in AI-related optical and networking stocks.
Lumentum reported Tuesday that fiscal second-quarter revenue jumped 65% to $665.5 million, with non-GAAP earnings hitting $1.67 per share for the quarter ended Dec. 27, 2025. CEO Michael Hurlston described the company as “only at the starting line” for optical circuit switches and co-packaged optics. He noted the optical-circuit-switch backlog — orders in hand — exceeds $400 million. Additionally, he flagged a separate multi-hundred-million-dollar co-packaged optics order set for delivery in the first half of 2027. Looking ahead to the March quarter, Lumentum projected revenue between $780 million and $830 million, with non-GAAP EPS in the range of $2.15 to $2.35, a figure that excludes stock compensation and some acquisition-related expenses. 1
Citi’s Papa Sylla bumped his price target on Lumentum to $560 from $450, maintaining a Buy rating. He argued that consensus estimates still underestimate the company’s AI growth potential. 2
Needham’s Ryan Koontz bumped his price target to $550 from $470 and kept a Buy rating. He highlighted faster expansions in indium phosphide (InP) chip fabs and long-term customer contracts that boost visibility on future revenue. Indium phosphide is a compound semiconductor used in high-speed optical chips. 3
At B. Riley, Dave Kang raised Lumentum from Neutral to Buy, assigning a $526 price target. He highlighted “outsized growth” driven by optical circuit switching and an upcoming ramp in co-packaged optics. 4
The stock has turned into a crowded trade, and Friday’s price swings highlighted just how volatile it can get. A drop in yields as Lumentum ramps up production, or a slowdown in cloud spending delaying orders, would challenge the current optimistic outlook.
Investors are pressing for concrete evidence that the company will meet its March-quarter goals and convert backlog into actual shipments, rather than just discussing plans. Lumentum’s upcoming investor event is set for March 17 in Los Angeles, during the OFC 2026 briefing. 5
