NEW YORK, December 29, 2025, 18:08 ET — After-hours
- Lumentum shares fell 4.6% after the close, lagging a broader dip in tech.
- Investors are watching whether the “AI trade” regains traction in thin year-end conditions.
- Focus later this week turns to Fed minutes and jobless claims.
Lumentum Holdings Inc shares fell 4.6% to $372.61 in after-hours trading on Monday, after dropping as much as 6.7% earlier in the session. The stock traded between $364.50 and $390.00, with about 3.0 million shares changing hands.
The slide came as investors eased off higher-risk technology positions in the final week of the year, when thinner liquidity can magnify moves in momentum names.
That matters for Lumentum because it has become closely tied to expectations for AI infrastructure spending. The company sells optical and photonic products — light-based components used to move large amounts of data — to cloud and communications customers building AI/ML systems and data-center interconnect networks, the high-speed links that connect data centers.
U.S. stocks ended lower on Monday, with the S&P 500 down 0.35% and the Nasdaq Composite off 0.50%, as heavyweight technology and other AI-linked stocks retreated from last week’s gains. “This is not the beginning of the end of the tech dominance, it’ll turn out to be a buying opportunity,” said Hank Smith, director and head of investment strategy at Haverford Trust. Investors are watching for a “Santa Claus rally” — the seasonal tendency for the S&P 500 to rise in the last five trading days of the year and first two in January — while Fed meeting minutes and weekly jobless claims are due later this week and U.S. markets are closed Thursday for New Year’s Day. Reuters
Lumentum’s drop outpaced declines in several optical and networking peers. Coherent Corp fell 1.4%, Ciena slipped 1.1% and IPG Photonics dropped 3.0% in Monday’s session.
The size of Lumentum’s intraday swing underscored how quickly AI-linked hardware stocks can reprice when traders take profits or de-risk into a holiday week.
For investors, the near-term question is whether Monday’s pullback is a pause in a crowded AI positioning trade or the start of a broader rotation away from high-momentum parts of the market.
Attention is also shifting to the next company-specific catalyst, with Lumentum expected to report its next quarterly results around Feb. 5, according to Nasdaq’s earnings schedule, though the company has not confirmed a date.
When Lumentum reports, traders will be looking for updates on demand and order visibility in its Cloud & Networking business, alongside any signals on pricing and supply conditions in high-speed optical components.
Until then, Lumentum’s near-term direction is likely to track swings in the broader tech complex — especially in a week when many desks are lightly staffed and macro headlines can carry outsized weight.
