NEW YORK, January 2, 2026, 3:14 PM ET — Regular session
- Lumentum shares were up about 4% in afternoon trade, outpacing the broader market.
- Optical and AI-linked hardware names broadly rose, with several sector peers posting solid gains.
- Traders are looking ahead to next week’s U.S. jobs and inflation data and Lumentum’s next earnings update.
Shares of Lumentum Holdings Inc (LITE) rose 4.3% to $384.31 in afternoon trading on Friday, extending a strong run in AI-linked optical hardware names. The stock has traded between $374.87 and $391.92 so far in the session.
The move matters because Lumentum is closely tied to cloud and data-center spending, where investors have been quick to reward suppliers seen as exposed to the build-out of AI computing. With 2026 getting underway, traders are testing whether last year’s risk appetite is still intact — especially in growth stocks that tend to be sensitive to interest-rate expectations.
Friday’s gains came even as the broader market turned lower, while chip stocks outperformed. The Philadelphia Semiconductor Index was up 3.5% earlier in the session, Reuters reported. “Stocks trade expensive on 18 of 20 measures,” Savita Subramanian, Bank of America’s equity and quant strategist, wrote in a note. Reuters
Lumentum’s move tracked strength across optics and networking names. Coherent rose 5.2%, Applied Optoelectronics surged 13.4% and Ciena gained 4.4% in afternoon trade.
Lumentum designs optical and photonic products used in communications networks and industrial laser applications. Its Cloud & Networking unit sells components and subsystems into cloud data center infrastructure — including products used in AI and data-center interconnect — while its Industrial Tech segment sells lasers for manufacturing and other applications. Reuters
Optical transceivers — a key product category for the sector — are the hardware that converts data from electrical signals into light and back again so it can move quickly through fiber. Demand typically rises when cloud operators expand capacity and push more traffic through data centers.
Lumentum’s latest formal outlook remains the one it set with its fiscal first-quarter results in November. The company said revenue came in at the high end of its guidance range and forecast fiscal second-quarter revenue of $630 million to $670 million, with non-GAAP diluted earnings per share of $1.30 to $1.50. CEO Michael Hurlston said the company was seeing momentum across data center, data-center interconnect and long-haul markets. Lumentum
For investors, the question now is whether the early-year rally in AI hardware can hold as macro data returns to center stage and valuations remain in focus across the tech complex.
The next week brings several potential market-moving catalysts. U.S. employment data is due January 9 and consumer price inflation data is due January 13, Reuters reported — releases that could shift expectations for Federal Reserve policy and, by extension, growth-stock valuations. Reuters
Company-specific attention will turn to Lumentum’s next earnings report, which is expected around February 5, according to Nasdaq. Investors will be watching for updates on cloud and networking demand, margins and the company’s near-term outlook. Nasdaq
Until then, traders are treating Lumentum as part of a broader AI-infrastructure trade, where day-to-day moves can be amplified by shifts in rate expectations and sentiment across semiconductors and data-center supply chains.
If next week’s data and January earnings season reinforce a soft-landing narrative, high-growth hardware names could keep attracting bids. If rates reprice higher on stronger data, the same stocks could see volatility return just as quickly.
