On October 9, Lumentum rose 6.24% in pre-market trading, trading at $1,114.00 per share.

The stock extended gains after company management disclosed that optical component capacity is now sold out through early 2029, a sharp improvement from the prior expectation of 2028. This shift reflects accelerating demand from the AI datacenter construction boom, with management noting order visibility is extremely high and the current expansion pace remains far short of customer needs.

Analysts on average project Lumentum's sales will more than double this year, while several investment banks have recently raised price targets, including Citigroup to $1,400 and Stifel to $1,232. At the industry level, intensifying demand for VCSEL and co-packaged optics further reinforces the long-term growth narrative for optical communications.

Lumentum Holdings Inc. manufactures optical and photonic products serving cloud datacenter, AI/ML, enterprise networking, and industrial technology markets, including high-speed transceivers, laser chips, and fiber lasers.

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