Lumentum and Coherent Rise as Optical Connectivity Stocks Continue Gaining Momentum
Optical connectivity stocks are continuing their upward trend amid strong demand from hyperscalers. Lumentum Holdings (NASDAQ:LITE) rose by 3% on Friday, extending its year-to-date gain to over 156%. The Roundhill Photonics & Optics ETF also climbed 4%, while the broader market declined slightly as indicated by a 0.2% drop in SPY. Coherent Corp. and Corning saw gains of 5% and 3%, respectively, driven primarily by ongoing demand for optical components used in AI data centers. Lumentum's recent Q4 FY26 results showed revenue growth of over 109% year-over-year to $1.006 billion with strong guidance provided ahead of schedule due to AI-driven demand. However, the stock remains vulnerable if hyperscaler spending slows or optical capital expenditures decline.
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Topics: ETF performance optics stock_prices