New York, Jan 16, 2026, 12:50 PM ET — Regular session
Lumentum Holdings Inc. (LITE) shares dropped 3.9% to close at $329.92 on Friday, starting the day at $350. The stock fluctuated between $324.11 and $354.00, with roughly 2.2 million shares changing hands.
The recent drop puts a San Jose photonics supplier back in focus. It provides optical components for telecom and data center networks and pushes commercial lasers for advanced manufacturing. This blend makes the stock a barometer for both networking and factory-capital spending. 1
On Thursday, Lumentum announced it will present high-power ultrafast and UV laser platforms, along with 3D-sensing VCSELs—semiconductor lasers commonly used for depth sensing—at SPIE Photonics West 2026 in San Francisco, scheduled for Jan. 20-22. “Manufacturers are being pushed to achieve tighter tolerances while simultaneously increasing throughput and uptime,” said Matt Philpott, vice president of business development, in the company’s release. 2
Barclays analyst Tom O’Malley bumped Lumentum’s price target sharply, from $181 to $365, though he stuck with an “Equal Weight” rating. He highlighted how investors are zeroing in on names most aligned with the artificial intelligence theme expected to dominate in 2026. 3
The stock has seen plenty of action this week. Lumentum climbed 3.5% Thursday but fell 8.2% the day before, per MarketWatch data. 4
The broader market held steady on Friday. The SPDR S&P 500 ETF gained roughly 0.1%, while the Invesco QQQ ETF slipped just a bit.
Peers showed a mixed picture. Coherent dropped nearly 0.9%, IPG Photonics slipped 0.6%. On the upside, nLIGHT climbed around 0.9%, with Ciena inching up about 0.6%.
A price target reflects an analyst’s projection of where a stock might land over a longer horizon, not a short-term prediction. “Equal Weight” usually signals a neutral view—more like “hold” than “buy”—suggesting the stock will track in step with its sector or the analyst’s group of coverage.
But in a stock already jumping on headlines, trade-show lineups and target hikes can lose steam quickly. If demand indicators weaken or upcoming forecasts don’t back up lofty hopes, selling may ramp up as swiftly as it began.
Lumentum will report its fiscal second-quarter results on Feb. 3, after the market closes. The company plans to host an audio webcast at 5:00 p.m. ET. 5
