NEW YORK, March 9, 2026, 11:45 AM EDT
- Lumentum was up about 10.6% in late-morning New York trading.
- S&P Dow Jones Indices will add the company to the S&P 500 before the market opens on March 23. News Release Archive
- The move follows Nvidia’s $2 billion preferred-stock investment and multiyear purchase commitments announced on March 2. SEC
Shares of Lumentum Holdings jumped about 10.6% on Monday, even as broader U.S. stocks fell, as investors bought the photonics company ahead of its addition to the S&P 500 later this month. The stock last traded at about $617.81 in New York. Reuters
That matters now because companies added to the benchmark often attract buying from index and exchange-traded funds that mirror the S&P 500, a market gauge tracked by trillions of dollars. For Lumentum, it also caps a rapid move from the S&P MidCap 400 into the flagship large-cap index. Reuters
S&P Dow Jones Indices said Lumentum, Vertiv, Coherent and EchoStar will join the index before the market opens on March 23, replacing Match Group, Molina Healthcare, Lamb Weston and Paycom Software in the quarterly rebalance. News Release Archive
Monday’s move builds on last week’s deal with Nvidia. Lumentum said in a filing that it sold $2 billion of convertible preferred stock to Nvidia in a private placement, and the companies announced a multiyear partnership and purchase commitments tied to advanced optics for AI systems. SEC
Photonics uses light rather than electrical signals to move data. Nvidia chief Jensen Huang said AI is driving “the largest computing infrastructure buildout in history,” and Lumentum said the deal would help fund a new U.S. fabrication facility and deeper research work on next-generation optics. Reuters
Lumentum’s recent numbers had already given investors more to work with. In February, Chief Executive Michael Hurlston said the company was only at the “starting line” of demand for optical circuit switches and co-packaged optics, a light-based data-link technology, after second-quarter revenue rose 65.5% to $665.5 million; it forecast third-quarter revenue of $780 million to $830 million. Lumentum Investor Relations
Peers tied to the same index change also rose on Monday, though by less. Coherent was up about 3.7% and Vertiv gained about 7.8%.
But the trade still leans hard on AI spending staying strong and on Lumentum adding capacity without a stumble. The company warned in filings that demand swings, geopolitical shocks and problems expanding manufacturing could hit results, while Nvidia’s preferred shares cannot convert until waiting periods under U.S. antitrust law expire. SEC
Based in San Jose, Lumentum makes lasers, modules and optical subsystems used in AI, cloud and telecom networks. The company said in February that backlog for optical circuit switches had moved well beyond $400 million and that it had won an additional multi-hundred-million-dollar co-packaged optics order for delivery in the first half of 2027. Lumentum Investor Relations
