New York, January 21, 2026, 19:08 ET — After-hours
- Shares climbed roughly 1.6% Wednesday, after surging nearly 10% the day before
- Aletheia Capital lifted its price target to $500, pointing to robust demand for high-speed optical lasers
- Investors await Lumentum’s fiscal Q2 report on Feb. 3 for fresh details on orders, pricing, and supply
Shares of Lumentum Holdings Inc (LITE.O) climbed roughly 1.6% on Wednesday, last changing hands around $362.44 after hours. The stock swung between $350.26 and $376.06 during the regular session, with about 5 million shares traded.
The optical components maker surged again, drawing attention amid a market eager to back data-center playmakers. Lumentum climbed 10.05% Tuesday, bucking the broader market’s decline. (MarketWatch)
Aletheia Capital’s Skye Chen boosted Lumentum’s price target to $500 from $330 on Tuesday, maintaining a buy rating. Chen attributed the upgrade to much stronger demand for EMLs—electro-absorption modulated lasers used in high-speed optical links—and highlighted both pricing strength and a faster transition to next-gen laser tech. (Streetinsider)
This is crucial as investors seek to identify the biggest winners from major cloud providers upgrading to faster connections within data centers. Investors.com noted the spotlight is on suppliers enabling the shift from copper to optical links, driven by the expansion of AI server clusters. (Investors)
The broader market lifted spirits Wednesday, with the S&P 500 climbing 1.16%. IPG Photonics, the laser specialist, surged 8.49%, while nLIGHT nudged up 1.52%, according to MarketWatch data. (MarketWatch)
Lumentum’s recent rally has pushed the stock’s daily volatility back into focus. Traders have been using the name for quick bets on the AI infrastructure trend, a move that can backfire when sentiment shifts.
A regulatory filing revealed that Chief Accounting Officer Matthew Joseph Sepe had 563 shares withheld at $343.27 each on Jan. 15 to cover income taxes related to restricted stock units vesting. After the transaction, he held 41,514 shares. (Sec)
Lumentum is set to report its fiscal second-quarter results after the market closes on Feb. 3. The company will follow up with an audio webcast at 5:00 p.m. ET. (Lumentum)
Still, risks linger. Any hiccup in demand, pricing, or supply of the high-speed components investors are banking on could slam the stock, particularly after two days of sharp gains.
The rally faces its next challenge on Feb. 3, as Lumentum releases earnings and lays out guidance for the upcoming quarter.
