Lumentum Surges Nearly 10% While Corning Gains Less, Highlighting Divergence in AI Optics Trade
On Wednesday trading on September 23, Lumentum Holdings Inc. (NASDAQ:LITE) surged nearly 10%, outperforming other optical networking companies like Coherent and Corning Incorporated (NYSE:GLW), which gained only 6.9% and 0.4%, respectively. The disparity suggests investors are beginning to differentiate between segments of the AI connectivity infrastructure rather than buying all optics stocks indiscriminately. Lumentum is seen as a concentrated play on high-speed optical components such as transceivers, driven by demand from hyperscalers deploying large-scale AI clusters. Corning, in contrast, has broader exposure through fiber and physical network buildouts but less direct involvement with the most valuable parts of the infrastructure. Additionally, Corning recently announced an equity distribution agreement allowing up to $2 billion in stock sales via Goldman Sachs, potentially introducing dilution concerns. The divergence is also reflected among institutional investors: Lumentum's ownership by hedge funds decreased slightly while Arrowstreet Capital increased its stake; for Corning, the number of holders rose and Tairen Capital boosted its position. Short interest remains high at 8% of public float in Lumentum.
Topics: AI Corning Lumentum optics trade stock performance