TLDR
- Lumentum hit a new all-time high of $808.80 on Thursday, last trading at $777.17
- Stock was recently added to the S&P 500, drawing index and ETF buying
- Multiple analysts raised price targets, with some hikes of up to 66%
- The company beat Q2 earnings estimates — EPS of $1.67 vs. $1.41 expected — with revenue up 65.5% year-over-year
- Lumentum announced a new 240,000 sq ft manufacturing facility in North Carolina to produce lasers for AI data centers, with Nvidia as a customer
Lumentum (LITE) stock hit a new all-time high of $808.80 on Thursday before pulling back to close at $777.17. Premarket on March 26, the stock was trading down 3.49% to $750.
The company’s run has been fueled by a mix of analyst enthusiasm, index inclusion, strong earnings, and now a major manufacturing announcement.
Lumentum announced plans to build a new laser manufacturing facility in Greensboro, North Carolina. The 240,000 sq ft site was acquired from semiconductor chipmaker Qorvo (QRVO) and will produce InP-based optical products, including continuous wave and ultra-high-power lasers.
Nvidia (NVDA) will be a customer of the facility. Production is expected to ramp up in mid-2028.
Lumentum said it plans to invest hundreds of millions of dollars over the next several years at the site. The company says it will preserve and create over 400 US manufacturing jobs.
CEO Michael Hurlston said: “Our customers are building the infrastructure that will define the next era of computing. Adding this new InP manufacturing facility significantly expands our capacity, deepens our strategic partnerships, and ensures we can deliver the performance, reliability, and scale required for the AI revolution.”
Analyst Upgrades and S&P 500 Inclusion
A wave of analyst price target increases helped push LITE to its highs. B. Riley upgraded the stock from neutral to buy and raised its target from $147 to $526. JPMorgan set a target of $565 with an overweight rating. Citigroup went to $560 with a buy. UBS moved its target from $215 to $455, keeping a neutral rating. Morgan Stanley raised its target to $595 but held an equal weight rating.
The current average analyst price target sits at $575.06, with two strong buy ratings, eleven buys, and six holds.
Lumentum was also recently added to the S&P 500, a move that typically brings in automatic buying from index funds and ETFs. That structural inflow likely added fuel to the rally.
Earnings Beat and Valuation Stretch
In its most recent quarter, Lumentum posted EPS of $1.67, beating the $1.41 consensus estimate. Revenue came in at $665.50 million, up 65.5% year-over-year and above the $646.74 million estimate. The company has set Q3 2026 EPS guidance at $2.15–$2.35.
Not everything is clean, though. The stock trades at a P/E of 238, which is elevated by almost any measure. Insiders have been selling — CFO Wajid Ali sold 5,302 shares in late February at an average of $691.13, and insiders have sold a combined 65,775 shares over the past 90 days.
Institutional investors hold 94.05% of the stock. Vanguard, Arrowstreet Capital, and Geode Capital all increased their positions in recent quarters.
The 50-day moving average sits at $567.66, and the 200-day at $363.11 — both well below current trading levels.
Considering a new stock? You may want to see what’s on our watchlist first.
Our team at Knockout Stocks follows top-performing analysts and market-moving trends to spot potential winners early. We’ve identified five stocks gaining quiet attention that could be worth watching now. Create your free account to unlock the full report and get ongoing stock insights.Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
