New York, January 22, 2026, 19:16 EST — Trading after hours.
Lumentum Holdings Inc shares slipped roughly 2.1% to $354.49 in late Thursday trading, retreating after a volatile session.
The dip came just hours after Stifel boosted its price target on the optical and photonics firm to $400 from $220, maintaining a Buy rating. Remember, a price target is a broker’s projection of where a stock might head over time—not a promise—and this upgrade sets higher expectations for the company’s upcoming report. 1
Susquehanna raised its price target sharply, jumping from $230 to $420, while maintaining a Positive rating. Analyst Christopher Rolland called it a “steadying upcycle” in an earnings preview, noting that the AI infrastructure supply chain is expanding. He did point out, however, that the auto sector remains “somewhat challenged.” 2
Stifel’s latest note links Lumentum to an accelerated data networking buildout and maintains expectations for “positively biased estimate revisions” on the stock. The firm showed the strongest preference for Coherent and also highlighted Ciena, both closely followed by investors as indicators of optical demand. 3
Lumentum dropped 2.19% in regular trading, even as the broader market advanced. The S&P 500 gained 0.55%, and the Dow climbed 0.63%, according to MarketWatch data. Results among laser and optical peers were uneven. 4
Why it matters now: Lumentum has emerged as a popular bet on the infrastructure behind AI data centers — the fiber-optic connections shuttling data between racks, servers, and switches. When analysts mention “networking intensity,” they’re referring to the growing demand for gear and bandwidth driven by each new surge in computing power.
The risk is clear. Should orders or guidance miss the new targets, the stock could gap down quickly, especially since valuations are already tight, leaving minimal cushion for a weak quarter.
Traders will be watching closely in the next session to see if Thursday’s late dip lures buyers back or marks a stall after momentum poured into optical stocks. Coherent and Ciena are expected to track each other, even without any new updates from the companies.
Lumentum is set to report fiscal second-quarter results on Feb. 3, after the market closes. Investors will zero in on demand trends linked to AI networking, along with clues about supply, pricing, and margins. 5
