New York, Feb 24, 2026, 11:36 EST — Regular session
- Lumentum picked up roughly 1%, reaching $688.27 during intraday action.
- Optical circuit switches and co-packaged optics, both linked to AI data centers, remain in the spotlight as the rally persists.
- Up next, management heads to OFC for an investor briefing on March 17.
Lumentum Holdings (LITE.O) shares edged up 1.1% to $674.73 Tuesday, with the stock reaching as high as $688.27 earlier in the session. Trading volume stood at roughly 4.5 million shares in late morning.
The advance came as the market toggled between heavyweight tech and the underlying infrastructure that keeps it running. U.S. benchmarks notched gains, with traders once more favoring infrastructure stocks tied to data-center investment. (Google)
For Lumentum, the key focus is the optics refresh happening within cloud data centers as operators adopt quicker connections to manage rising computing demands. A Zacks report posted Monday on Nasdaq.com highlighted that the jump from 800-gigabit to “1.6T” optical links — referring to 1.6-terabit-per-second speeds — may hit the market ahead of schedule. That shift has potential to boost both shipment volumes and margins for component makers. (Nasdaq)
Investors are weighing just how fast co-packaged optics, or CPO, can actually move from hype to real sales. The technology brings optical links nearer to chips to save power and push data faster. According to a separate Nasdaq.com article, management sketched out a timeline pointing to the first significant ramp-up by late 2027—this comes after they revealed a multi-hundred-million-dollar order connected to CPO. (Nasdaq)
The last major spark for Lumentum arrived earlier this month, when the company posted its fiscal second-quarter numbers and raised its guidance. CEO Michael Hurlston told investors they’re “only at the starting line” in areas like optical circuit switches and co-packaged optics. He also pointed out that heightened demand has driven Lumentum’s OCS backlog “well beyond $400 million.” (Lumentum Investor Relations)
Peer action was mixed: Coherent edged up 0.3%, Ciena tacked on 2.9%, and Applied Optoelectronics shot up 4.4%. Marvell, though, fell 2.1% during the session.
Semiconductor stocks didn’t move as a block—iShares Semiconductor ETF slipped roughly 0.7%, signaling investors are reading Lumentum’s deal as a targeted play on optics and networking, not a broad-based chip rally.
The stock’s rapid ascent leaves little room for missteps. A slowdown in cloud budgets, lags turning backlog into deliveries, or hiccups scaling up newer offerings could swiftly pressure expectations for a stock already valued for rapid growth.
Traders, for now, are looking for signs demand is spreading past those first few surges. What they want: the next stage — optical switching and co-packaged optics — turning from initial orders into steady, repeatable shipments, all without putting pressure on margins.
March 17 stands out as the next key date. Lumentum is set to hold its investor briefing that day at the Optical Fiber Communication Conference and Exhibition in Los Angeles. (Lumentum Investor Relations)
