New York, Feb 7, 2026, 06:03 (EST) — The session has ended.
- Lumentum climbed 9.3% to finish Friday at $551.99, having hit $558.22 earlier in the session.
- Citigroup bumped its price target up to $560. JPMorgan went a touch higher, setting its target at $565.
- Attention shifts to the company’s March 17 investor briefing at OFC and Monday’s market open, following a director’s share sale filing.
Lumentum Holdings Inc closed out Friday at $551.99, a new all-time high. Shares jumped $47.14, or 9.3%. The stock touched $558.22 earlier in the session. U.S. markets will be closed Saturday.
That end-of-week surge kept the optics maker on radar, with investors watching the ramp-up in AI infrastructure outlays. Reuters reported Alphabet, Microsoft, Amazon, and Meta are projecting over $630 billion in total spending for 2026. 1
Amazon is planning $200 billion in capital expenditures this year, intensifying questions around returns while also highlighting just how massive the company’s expansion push has become. “Amazon has to invest at these levels just to stay in the race,” said D.A. Davidson’s Gil Luria. 2
Papa Sylla at Citigroup lifted his price target for Lumentum (LITE) to $560, up from $450, on Friday, keeping his buy rating in place. He argued that Street estimates are “not fully reflecting” what the company could see from AI growth. 3
JPMorgan bumped its price target up to $565 from $350 while sticking with an overweight rating, citing a “strong” fiscal Q2 and an “even more robust” Q3 outlook, TheFly reported. 4
Director Penelope Herscher has signaled an intent to sell as many as 4,849 shares, according to a securities filing that names UBS Financial Services as the broker. The filing—Form 144—serves only as a notice, meaning the sale isn’t certain. 5
Lumentum shares surged during a session that saw the Dow finish above 50,000 for the first time, as Wall Street bounced back. Nvidia and other chip stocks moved higher, traders circling back to the AI spending story. The S&P 500 climbed 1.97%, the Nasdaq tacked on 2.18%, according to Reuters. 6
Lumentum posted fiscal Q2 revenue at $665.5 million earlier this week and put its Q3 forecast between $780 million and $830 million, expecting non-GAAP EPS of $2.15 to $2.35. CEO Michael Hurlston described the company as “only at the starting line” when it comes to optical circuit switches and co-packaged optics, hardware that transmits light signals within data centers. The optical circuit switch backlog topped $400 million, according to Lumentum, which also pointed to a large order — in the hundreds of millions — set for delivery in the first half of calendar 2027. 7
Trading picks up again Monday, and the focus shifts to whether the stock can hang on to last week’s gains after a choppy stretch for AI-related shares. Next week brings a busy tech earnings lineup—Cisco Systems and Arista Networks among them—that could shake up views on data-center investment. 8
Lumentum plans to hold an investor briefing at the Optical Fiber Communication Conference and Exhibition in Los Angeles on March 17, a spot where suppliers typically share updates on demand, supply, and product roadmaps. According to organizers, the conference itself spans March 15-19. 9
Lumentum bulls face a new hurdle: the AI trade’s once-broad rally is fracturing as investors balk at ballooning capex and mounting debt. “This divergence is not a vote against AI,” wrote Charu Chanana, chief investment strategist at Saxo, highlighting a widening gap between hardware “picks and shovels” and the rest of the market. 10
