Track market-moving stories before they get noisy

Lumentum Holdings Inc. is transforming from a cyclical telecom equipment maker to a key supplier for AI-driven data center optical components. LITE delivered FY2026 revenue of $3.01 billion, up 83.2% year-over-year, with Q4 revenue more than doubling to $1.006 billion. I rate LITE a buy, as the market overreacts to a headline accounting loss while the underlying business trades at just 0.38 times earnings growth adjusted.

Key Takeaways LITE expects its fiscal first-quarter 2027 revenues midpoint to imply more than 130% year-over-year growth. COHR's AI data center expansion is supported by NVIDIA's $2 billion investment under a multiyear agreement.MTSI's data center revenue rose 40% sequentially and 81% year over year in fiscal third-quarter 2026. Optical and photonics products are in tremendous demand for serving global cloud and artificial intelligence (AI)/machine learning (ML) infrastructure. Large AI models require millions of graphical processing units (GPUs) working in tandem. 

As a result, the ecosystem witnesses massive growth in data throughput (as high as 400 Gbps and 800 Gbps). Traditional copper wiring is unable to carry these extremely high-speed data packets properly, as it generates excessive heat slowing down the entire AI compute cluster. 

Photonics technology solves this problem by transmitting data at the speed of light through fiber-optic network. Photonics enables high-speed, low-latency and energy-efficient data transfer without overheating.

Here, we recommend three photonics developers to investors that have jumped year to date. These stocks currently enjoy strong short-term upside potential. Moreover, industry-leading products of these companies and the unstoppable growth of AI-powered data centers make these stocks attractive investment opportunities for the long term. 

These stocks are: Lumentum Holdings Inc. (LITE - Free Report) , Coherent Corp. (COHR - Free Report) , and MACOM Technology Solutions Holdings Inc. (MTSI - Free Report) . Each of our picks currently carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks year-to-date.

Image Source: Zacks Investment Research

Lumentum Holdings Inc.Zacks Rank #1 Lumentum provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of AI, cloud computing, 5G connectivity, and beyond. LITE’s technology leadership in high-speed optical components has positioned it as an essential supplier to hyperscale customers deploying next-generation network architectures. 

Moreover, LITE has a strong collaboration with NVIDIA Corp. (NVDA - Free Report) for developing NVDA’s silicon photonics ecosystem, especially for deploying the latter’s Spectrum-X Photonics networking switches.

Optical circuit switching (OCS) is becoming a larger Systems driver under LITE’s multiyear, multibillion-dollar purchase agreement. OCS shipments doubled from fiscal third-quarter to fiscal fourth-quarter 2026, and management’s fiscal first-quarter 2027 outlook includes the company’s first triple-digit OCS revenue quarter.

Strong OutlookFor the first quarter of fiscal 2027, Lumentum expects revenues to be between $1.225 billion and $1.275 billion. The $1.25 billion midpoint implies more than 130% year-over-year growth and would mark another quarterly revenue record. 

Management expects roughly half of the sequential growth to come from components and the balance from systems. Non-GAAP operating margin is projected at 39.5-40.5%, while non-GAAP earnings are expected between $4.05 and $4.35 per share.

Solid Estimate RevisionsLumentum has an expected revenue and earnings growth rate of more than 100%, each, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.1% in the last seven days.

LITE has an expected revenue and earnings growth rate of 55.8% and 58.7%, respectively, for the next year. The Zacks Consensus Estimate for the next year’s earnings has improved 1.8% in the last seven days.

Image Source: Zacks Investment Research

Impressive Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 16.3% from the last closing price of $978.53. The brokerage target price is currently in the range of $820-$1,400. This indicates a maximum upside of 43.1% and a downside of 16.2%.

Coherent Corp.Zacks Rank #2 Coherent sits at the center of the AI optics buildout, with strong demand visibility supported by long-term agreements. COHR is positioned at the heart of the AI datacenter build-out, which has driven sustained strength in Datacenter and Communications. 

COHR provides highly scalable datacom transceivers, Co-Packaged Optics solutions, and high-speed VCSELs engineered to boost data center bandwidth. COHR is widening its datacenter opportunity through optical circuit switching (OCS), co-packaged optics (CPO) / near-packaged optics (NPO), multi-rail and thermal solutions. OCS already contributes revenues.

COHR and NVIDIA entered into a strategic partnership focusing on next-generation optical technology and silicon photonics for AI data centers. NVDA will invest $2 billion in COHR for a multiyear agreement up to 2030.

Strong OutlookFor the first quarter of fiscal 2027, Coherent expects revenues of $2.2 billion to $2.4 billion. The $2.3 billion midpoint implies approximately 12.4% sequential growth and about 45.6% growth from first-quarter fiscal 2026 revenues of $1.58 billion. Guidance established a credible path toward a quarterly revenue run rate above $3 billion by fiscal 2027’s end.

The company expects an adjusted gross margin of 39.5%-41.5%. Its 40.5% midpoint would represent a modest 30-basis-point sequential improvement. Projected adjusted EPS of $1.85-$2.05 implies midpoint growth of 12.1% from the fiscal fourth quarter and approximately 68% year over year.

Solid Estimate RevisionsCoherent has an expected revenue and earnings growth rate of 50% and 67.2%, respectively, for the current year (ending June 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 11.9% in the last 30 days.

COHR has an expected revenue and earnings growth rate of 35% and 46.1%, respectively, for the next year. The Zacks Consensus Estimate for the next year’s earnings has improved 0.4% in the last seven days.

Image Source: Zacks Investment Research

Robust Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 37.4% from the last closing price of $301.88. The brokerage target price is currently in the range of $280-$500. This indicates a maximum upside of 65.6% and a downside of 7.3%.

MACOM Technology Solutions Holdings Inc.Zacks Rank #1 MACOM Technology designs and manufactures photonic semiconductor products including high-speed lasers, photodetectors, and RF-over-fiber systems built for AI data centers, 5G wireless networks, and aerospace/defense applications. AI-powered data centers have been MTSI’s fastest-growing business segment over the past few quarters. 

Data Center remained MTSI’s fastest-growing business in the third quarter of fiscal 2026, with revenue of $137.6 million, up about 40% sequentially and 81% year over year. The primary driver for fiscal 2026 is 200G PAM4 content in pluggable optical modules, while bookings are being led by 800G and 1.6T platforms. MTSI’s 200G photodetectors are ramping in volume production, and 400G photodetectors are receiving positive feedback. 

MTSI’s portfolio also spans NRZ, PAM4 and coherent modulation across EML, silicon photonics and VCSEL architectures. Sampling of 200G and 400G-per-lane TIAs and drivers, linear equalizers, coherent-light solutions and work on 75-milliwatt CW lasers extend the opportunity as optical links move to higher data rates and new architectures such as NPO and XPO.

Strong GuidanceFor the fourth quarter of fiscal 2026, MACOM Technology expects revenues between $415 million and $425 million. The company anticipates adjusted earnings per share between $1.97 and $2.03.

Solid Estimate RevisionsMACOM Technology has an expected revenue and earnings growth rate of 35.8% and 48.6%, respectively, for the next year (ending September 2027). The Zacks Consensus Estimate for the next year’s earnings has improved 3.9% in the last 30 days.

Image Source: Zacks Investment Research

Huge Price Upside PotentialThe short-term average price target of brokerage firms represents an increase of 44.4% from the last closing price of $274.80. The brokerage target price is currently in the range of $300-$475. This indicates a maximum upside of 72.7% and no downside.

8.9.2026 22:09

Zámořské akciové trhy zakončily dnešní obchodování v záporném teritoriu. Index Dow Jones klesl o 1,18 % na 52 786,28 bodu, S&P 500 si odepsal 0,58 % a technologický Nasdaq Composite ztratil 0,32 %. Hlavním důvodem poklesu byl růst cen ropy způsobený geopolitickým napětím na Blízkém východě, který opět rozproudil obavy z vyšší inflace a možného zvýšení úrokových sazeb ze strany centrální banky.

V rámci indexu S&P 500 se nejvíce dařilo energetickému sektoru s růstem o 1 %, utilitám se ziskem 0,9 % a realitám, které přidaly 0 %. Naopak nejvýraznější propad zaznamenala zdravotní péče se ztrátou 2,6 %, finanční sektor klesající o 1,4 % a základní materiály nižší o 0,9 %. Z jednotlivých akcií výrazně posílily společnosti Lumentum Holdings (LITE) o 11 %, Intel Corp (INTC) o 9,1 %, Corning (GLW) o 7,6 %, Coherent Corp (COHR) o 7,1 % a Hewlett Packard Enterprise (HPE) o 7,8 %. Naopak nejvýrazněji propadly akcie společností Amgen (AMGN) o 10 %, Howmet Aerospace (HWM) o 11 %, Stryker Corp (SYK) o 8,8 %, Expedia Group (EXPE) o 7,9 % a GoDaddy (GDDY) o 8,3 %.

Na dluhopisovém trhu rostly výnosy krátkodobých cenných papírů a výnos desetiletého amerického vládního dluhopisu mírně stoupl na 4,79 %. Měnový trh zůstal bez výraznějších změn, euro stagnovalo na úrovni 1,1623 USD a kurz japonského jenu se pohyboval kolem 154,30 JPY za dolar. Komodity zaznamenaly smíšený vývoj, když lehká ropa WTI posílila o 1 % na 92,43 USD za barel, zatímco spotové zlato mírně odepsalo 0,3 % na 4 392,74 USD za trojskou unci.

Index Dow Jones -1,18 % na 52786,28 b.
S&P 500 -0,58 % na 7673,51 b.
Nasdaq Composite -0,32 % na 26421,41 b.

Index S&P 500 -0,58 % na 7673,51 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1 % Zdravotní péče -2,6 % Utility +0,9 % Finanční sektor -1,4 % Reality +0 % Základní materiály -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lumentum Holdings (LITE) +11 % Howmet Aerospace (HWM) -11 % Intel Corp (INTC) +9,1 % Amgen (AMGN) -10 % Hewlett Packard Enterprise (HPE) +7,8 % Stryker Corp (SYK) -8,8 % Corning (GLW) +7,6 % GoDaddy (GDDY) -8,3 % Coherent Corp (COHR) +7,1 % Expedia Group (EXPE) -7,9 %
Daniel Marván, Fio banka, a.s.

GoPro is surging on a merger that turns a camera company into an optical-transceiver play, and a famous YouTuber just became its largest individual shareholder. Here is what the move actually means against a backdrop of proven incumbents already delivering…

Optical-photonics stocks are running Friday morning, along with a stock that’s commonly associated with cameras and accessories, even as broad benchmarks slip. Notably, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.33% to $770.59, and the NASDAQ 100 tracking Invesco QQQ Trust (NASDAQ:QQQ) is essentially flat at $718.38.

GoPro (NASDAQ:GPRO) stock is up 34% to $1.86, extending a rerating that began Monday on the company’s Starman Optical merger news. Meanwhile, Coherent (NYSE:COHR | COHR Price Prediction) stock is up 7% to $282.45, giving the AI-connectivity theme a listed anchor with real datacenter revenue behind it. Lumentum Holdings (NASDAQ:LITE) stock is up 3% to $876.92, rounding out the incumbent optical set with a comparatively milder session gain.

The category itself is bid up today, and GoPro’s move is continuation of a deal already in the tape. The transaction was disclosed earlier in the week, so today’s flow is driven by positioning and enthusiasm around the pivot into optical, with no fresh operating disclosure attached.

Starman Merger Terms and a Markiplier Stake GoPro agreed on Monday to merge with Starman Optical, a privately held U.S. maker of optical transceivers. Under the terms, GoPro shareholders receive an aggregate $285 million, or $1.14 per share in cash, and retain roughly 10% of the combined company’s outstanding shares. GoPro said the transaction also extinguishes roughly $92 million of outstanding debt. The combined entity keeps its Nasdaq listing and is expected to close by year-end, subject to regulatory and stockholder approval.

CEO Nicholas Woodman said the deal positions GoPro as a leading American imaging and optical solutions company, extending its portfolio into AI datacenter infrastructure alongside defense, government, robotics, and aerospace markets. Separately, content creator Mark Fischbach, known online as Markiplier, disclosed a stake that makes him GoPro’s largest individual shareholder. That wrinkle has drawn meme-adjacent flow into an otherwise straightforward strategic deal, and it helps explain why the tape keeps extending well past the cash portion of the offer.

Coherent and Lumentum Anchor the Trade Coherent is the tangible comparison for what GoPro is trying to buy its way into. The company posted Q4 FY2026 revenue of $2.05 billion, up 33.7% year over year (YoY), with Datacenter & Communications revenue at $1.615 billion, or 79% of the total and up 59% YoY on a pro forma basis. CEO Jim Anderson stated Coherent enters fiscal 2027 with “exceptional customer demand, expanding production capacity, and multiple new growth platforms beginning to ramp.”

Lumentum’s fiscal Q4 print was equally forceful. Revenue reached $1.01 billion, up 109.3% YoY, with non-GAAP EPS of $3.23 and a non-GAAP operating margin of 36.6%. CEO Michael Hurlston stated Lumentum is “positioned at the heart of a secular industry shift” as AI compute pushes datacenter architects toward optical links for primary connectivity.

Both incumbents are producing results the newly combined GoPro entity has yet to demonstrate publicly (we profiled seven companies powering the AI datacenter buildout, from optical to power and cooling, in a free report). That gap is why today’s flow reads as a category bid with a speculative overlay on the top ticker, and why the softer moves in Coherent and Lumentum look more sober than the headline GoPro number.

What to Watch GoPro trades meaningfully above the $1.14 cash figure, which means the tape is factoring in an unpriced stub whose optical-transceiver business has no public operating history. Investors can watch for signs that the arbitrage math tightens as the deal moves toward closing, since that would likely drain some of the froth out of the continuation trade.

The Starman product mix also has to prove out against the incumbents. Coherent’s indium-phosphide ramp and Lumentum’s 1.6T module traction set a high bar, and any pricing or capacity slippage in the newly merged entity would show up quickly against those benchmarks.

Coherent and Lumentum shares remain cleaner ways to invest in the AI-connectivity theme, and traders should keep their exposure sized to a category that has already priced in a great deal of good news. Small positions, staggered entries, and clear risk limits fit the setup better than chasing a single-session move in a stock trading on flow while fresh disclosure remains absent.

Contact [email protected] for any questions or corrections.

Sandisk, Micron, and Lumentum have been huge winners over the past year.

Lumentum is in a 15-week long consolidation with their all-time high of 1,085.68 as the next point of entry.

Key Takeaways Lumentum is expanding its AI optics opportunity across OCS, CPO and NPO for data-center growth.LITE targets more than $400 million in OCS revenues during the second half of calendar 2026.Marvell combines silicon photonics, switches, SerDes and custom XPUs for scale-up solutions. Lumentum (LITE - Free Report) is benefiting from accelerating artificial intelligence (AI) infrastructure spending as data-center architectures increasingly shift toward optical connectivity. The company is gaining traction across optical circuit switches (OCS), co-packaged optics (CPO) and near-packaged optics (NPO), broadening its exposure from scale-out networks into scale-across and optical scale-up architectures. These developments are expanding Lumentum’s optical total addressable market (TAM) and strengthening its position in AI connectivity, while increasing competitive prowess against the likes of Marvell Technology (MRVL - Free Report) and NVIDIA (NVDA - Free Report) .

OCS is emerging as one of Lumentum’s strongest near-term growth drivers. The company doubled OCS shipments sequentially in the fiscal fourth quarter and expects its first triple-digit OCS revenue quarter in the first quarter of fiscal 2027. The company is tracking toward more than $400 million in OCS revenues during the second half of calendar 2026. Management expects the company to become the #1 supplier to a major OCS customer in early 2027, despite the customer maintaining an internal source. LITE describes itself as the only merchant supplier currently shipping OCS at $100-million-plus quarterly levels. Specialized in-tray OCS products could provide another additive opportunity around 2028.

CPO represents another major opportunity as hyperscalers require more power-efficient connectivity for increasingly dense AI clusters. Lumentum expects ultra-high-power laser revenues to reach roughly $50 million by the end of calendar 2026 and expects its first triple-digit revenue quarter in the third quarter of fiscal 2027. The company has received its first external light source module order, which carries a meaningfully higher average selling price than the lasers it currently ships and could expand its revenue opportunity in optical scale-up applications.

NPO expands the opportunity by placing optical engines close to AI accelerators and providing a transitional path toward broader CPO adoption. Lumentum says NPO is completely additive to its existing TAM, with even its largest CPO customer evaluating NPO for additional use cases. Its portfolio includes mid-power lasers integrated into optical engines and high-power lasers for external light sources, spanning 120mW, 150mW and 400mW output levels. New GPUs, XPUs and TPUs arriving from mid-2027 through early 2028 are expected to offer SerDes speeds compatible with wider NPO/CPO adoption.

LITE Faces Tough CompetitionMarvell presents a significant challenge because it can combine silicon photonics, switches, SerDes, custom XPUs and optical interconnects into end-to-end scale-up solutions. MRVL has shipped more than 1 million silicon-photonics DCI modules and accumulated more than 15 billion hours of field data. It is working with multiple Tier-1 customers on its third-generation 6.4T NPO/CPO light engine, while Celestial AI’s photonic-fabric technology has already been selected by a Tier-1 hyperscaler. Marvell expects scale-up optics revenues of roughly $300 million from true NPO and CPO-based solutions, marking the beginning of what it views as a major growth cycle.

NVIDIA is collaborating with Marvell on silicon photonics and NVLink Fusion, allowing Marvell to develop networking semiconductors and custom chips that can interface with NVIDIA infrastructure. NVIDIA’s broader control across AI compute and networking could give it significant influence over future optical architectures, affecting the share of AI connectivity available to independent suppliers such as Lumentum.

LITE’s Share Price Performance, Valuation & EstimatesShares of Lumentum have appreciated 143% year to date, outperforming the broader Zacks Computer and Technology sector’s 17.1% growth.

LITE Stock’s Price Performance
Image Source: Zacks Investment Research

LITE stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 38.42X compared with the broader sector’s 20.76X. Lumentum has a Value Score of F.

LITE’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lumentum’s earnings is currently pegged at $4.23 per share, up by 67 cents over the past 30 days, suggesting 284.55% year-over-year growth.

Lumentum currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways Lumentum began shipping 1.6T transceivers in Q4 FY26, with adoption set to accelerate.Higher-ASP 1.6T products, better yields and capacity utilization are boosting transceiver profitability.LITE expects 200G EMLs to reach at least 50% of volume by mid-2027 as AI optics demand rises. Lumentum (LITE - Free Report) is benefiting from the accelerating transition toward 1.6T transceivers and 200G-per-lane optical technology as hyperscalers deploy increasingly bandwidth-intensive artificial intelligence (AI) clusters. The company began shipping 1.6T transceivers in the fourth quarter of fiscal 2026, while the bulk of its cloud transceiver shipments remained at 800G and expects adoption to intensify from the first quarter of fiscal 2027 through calendar 2027. Lumentum believes improved design engineering has helped it reach the market ahead of larger competitors in several instances, strengthening its position against Cisco Systems (CSCO - Free Report) and NVIDIA (NVDA - Free Report) in next-generation AI connectivity.

The transition should strengthen Lumentum’s Systems business through rising demand for higher-value cloud transceivers. Tier-1 hyperscalers are rapidly shifting from 800G to 1.6T as custom AI clusters require greater bandwidth and more complex signal-integrity requirements. Higher-ASP 1.6T products, improving manufacturing yields and greater capacity utilization, are already supporting transceiver profitability. Lumentum expects continued momentum in its Systems business in the first quarter of fiscal 2027, supported by the 1.6T ramp and accelerating Optical Circuit Switching (OCS) deliveries, although management expects approximately half of sequential first-quarter revenue growth to come from the Components portfolio.

The 1.6T transition is expanding opportunities for Lumentum’s laser portfolio. The company’s 200G-per-lane Electro-absorption Modulated Laser (EML) products already accounted for more than 25% of EML revenues. Lumentum expects 200G EMLs to represent 50% or more of the volume by mid-2027. It expects the product mix to increasingly favor CW lasers as 1.6T adoption rises. LITE’s redesigned 200G CW laser is smaller and more efficient, supporting its gross-margin profile. Both CW and EML products remain accretive to corporate margins, while tighter manufacturing specifications have enabled customers to achieve better transceiver yields.

To capture rising demand, Lumentum is expanding capacity across its two indium-phosphide wafer fabs in Japan and qualifying EML and CW processes on new tools. The company expects more than 50% year-over-year EML unit growth in the December 2026 quarter and is preparing for both 200G and emerging 300G lane-speed opportunities. However, supply remains tight, with component constraints limiting shipments to a level below market demand. Capacity expansion will therefore be critical to translating strong 1.6T and 200G demand into sustained revenues and market-share gains.

LITE Faces Tough CompetitionCisco is strengthening its competitive position through Acacia optics and Silicon One-based AI networking. Acacia generated more than $1 billion in fiscal fourth-quarter orders, while optics represented roughly 40% of Cisco’s $4 billion hyperscale AI infrastructure orders. Cisco also estimates AI scale-across traffic could be roughly 14 times historical data-center interconnect traffic and has already secured P200 scale-across wins with three hyperscalers. Its combination of optics, Silicon One and multi-rail optical systems could pressure Lumentum as AI networks migrate toward higher-speed architectures.

NVIDIA’s expanding presence across hyperscale AI infrastructure positions it to influence next-generation networking architectures. A key competitive strength is its vertically integrated AI platform, combining GPUs, CPUs, NVLink, Spectrum-X, InfiniBand and software. NVIDIA’s Data Center networking revenue nearly tripled year over year to $15 billion, while Spectrum-X has emerged as a major AI-focused Ethernet platform. This growing ecosystem could create competitive pressure for Lumentum by giving NVIDIA greater influence over networking architectures and connectivity choices as AI infrastructure scales.

LITE’s Share Price Performance, Valuation & EstimatesShares of Lumentum have appreciated 125.3% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 14.4%.

LITE Stock’s YTD Price Performance
Image Source: Zacks Investment Research

LITE stock is trading at a premium, with a forward 12-month price-to-earnings ratio of 35.94X compared with the broader sector’s 20.66X. Lumentum has a Value Score of F.

LITE’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lumentum’s earnings is currently pegged at $4.23 per share, up by 67 cents over the past 30 days, suggesting 284.55% year-over-year growth.

Lumentum stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Lumentum Holdings Inc (NASDAQ:LITE) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.

On August 26 at 10:41 AM EST, LITE triggered a Power Inflow signal at a price of $901.72. LITE’s price in the opening hour of trading had been mostly stagnant, even dropping slightly prior to the signal. At the time of the signal, and then thereafter, both retail and institutional trading interest in LITE shifted toward the buy side, leading to an immediate and steady rise in the stock price, eventually reaching a post-alert high of $943.15 as of 2:30PM EST. This Power Inflow signal is intended to be a bullish indication of institutional and retail interest, highlighting where traders may be entering the market for the stock.

Understanding the Power Inflow Signal

The Power Inflow alert is a proprietary signal developed and provided by TradePulse. Issued within the first two hours of the trading day, the alert highlights moments when there is a significant shift in order flow, specifically indicating a strong trend toward buying activity. This suggests a higher probability of bullish price movement for the remainder of the trading day, making it a potentially strategic and opportune entry point for active traders.

Order flow analytics examine real-time buying and selling behavior by analyzing volume, timing, and order size across both retail and institutional participants. These insights provide a deeper understanding of price action and market sentiment, allowing traders and institutions to make more informed decisions.

LITE Performance

At the time of the Power Inflow alert, LITE was trading at $901.72. Following the signal:

• Intraday High As Of 2:30PM EST: $943.15 (+4.59%)

Today’s Power Inflow alert on LITE illustrates a clear example of how real-time order flow analytics can uncover bullish momentum, particularly during periods when price action appears stagnant or even declining. Traders who bought LITE shortly after the Power Inflow signal could have captured a significant intraday gain, emphasizing the effectiveness of TradePulse’s Power Inflow alert and the advantage of closely monitoring order flow data. These short-term gains further highlight the value of order flow analytics in identifying bullish intraday momentum and potential price reversals.

This article is for informational purposes only and does not constitute financial advice, investment recommendations, or a solicitation to buy or sell securities. The analysis is based on stock order flow data, but accuracy is not guaranteed. Investing involves risk, including possible loss of principal, and past performance is not indicative of future results. Please consult a licensed financial advisor before making any investment decisions.

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Lumentum Just Delivered the AI Growth Investors WantedLumentum NASDAQ: LITE CEO Michael Hurlston said the growing bandwidth requirements of artificial intelligence data centers are accelerating a shift from copper connections to optical technologies, creating new demand across racks, clusters and data centers.

Speaking at Deutsche Bank’s 20th Annual Tech Conference, Hurlston said copper’s effective reach declines as connection speeds rise. At 800G, he said, copper can reliably carry signals for roughly 10 meters, while at 1.6T its reliable range falls to approximately two to three meters. Many links within data-center racks and clusters exceed those distances, he said.

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AI Cold War Catches Light: Federal Friction in the Server Rack“As these speeds go up, you go from 800G to 1.6T, eventually we are going to go to 3.2T, the presence of copper and the technical aspects of copper become more and more difficult to make work,” Hurlston said.

Optical Switching Opportunity Expands Hurlston highlighted optical circuit switches, or OCS, as a major growth opportunity. He said customer engagement for OCS is broad and extends beyond Google, despite investor perceptions that Google is the principal user of the technology.

3 Photonics Companies Making Quantum Tech PossibleOCS can be deployed inside a rack to route traffic around overloaded or failed graphics processing units and tensor processing units, Hurlston said. He noted that hardware failures can be especially problematic when large compute models involve tens of millions of dollars in compute time.

The company’s largest customer has substantially increased orders since Lumentum’s most recent earnings call, according to Hurlston. He said stronger OCS demand and the product’s margin profile supported Lumentum’s updated fiscal 2028 earnings-power target of $40.

Lumentum had previously cited an $8 billion total addressable market for OCS, but Hurlston said that estimate now appears “significantly under called.” He attributed expanding interest to OCS’s power and loss advantages relative to electrical switches.

“We think this will be one of the largest growth drivers in the company,” Hurlston said.

Scale-Up, Scale-Across and Optical Engines Hurlston said co-packaged optics, or CPO, and near-packaged optics, or NPO, represent the company’s largest near-term opportunities. He argued the technologies should not be viewed as mutually exclusive or as a threat to the broader optics industry.

In CPO designs, the optical engine is placed on the same substrate as core computing hardware, such as a switch or GPU. NPO places the optical engine separately from the principal compute or switch substrate. Hurlston said NPO is currently expected to represent a larger opportunity than CPO in the near term because some customers are adopting optical lanes at a higher rate.

Lumentum sees opportunities to supply high-powered lasers and external light sources, or ELS, to these architectures. In some configurations, lasers are separated from the optical engine and placed on the faceplate of a tray, he said. For certain NPO customers, Lumentum expects to supply the complete ELS.

Hurlston also said the company’s scale-across business—connecting separate data centers through fiber—is underappreciated. Training models can exceed the capacity of a single data center, requiring multiple facilities to operate together, he said. In addition, community resistance to large data-center projects may encourage operators to build smaller facilities dispersed over several kilometers, increasing the need for fiber connectivity among them.

Laser Demand and Manufacturing Capacity On laser products, Hurlston said average selling prices for electro-absorption modulated lasers, or EMLs, roughly double in the transition from 100G to 200G. He said Lumentum and Broadcom are currently the two large suppliers of 200G EMLs, with limited competitive pressure visible in the near term.

While the number of EMLs is expected to rise as the market transitions from 800G to 1.6T, Hurlston said EML-based transceivers could decline as a percentage of the market as silicon photonics gains adoption. He estimated EML-based transceivers account for roughly 70% to 80% of the 800G market and could represent about 40% to 50% at 1.6T. At 3.2T, he said, silicon photonics may face technical limitations that could increase both EML unit volumes and market share.

Hurlston said laser quality and consistency can improve transceiver yields for customers, supporting a price premium. He added that Chinese suppliers may eventually compete in lower-power continuous-wave laser markets, particularly 70-milliwatt and 100-milliwatt products, but said Lumentum currently sees a supply gap it is being asked to fill.

The company is preparing manufacturing capacity to address demand. Hurlston said Lumentum’s Greensboro facility is expected to begin generating revenue in early calendar 2028 after a roughly two-year production ramp. NVIDIA has entered a multibillion-dollar long-term agreement with Lumentum and helped support the fab purchase and equipment investment, he said.

However, Hurlston said NPO demand has arrived earlier and at a larger scale than the company previously expected. Rather than becoming a late-2028 or early-2029 event, he said the opportunity now appears to be emerging in late 2027 and early 2028.

He identified time as the primary constraint on expanding supply, citing lengthy cycles for installing equipment, qualifying products internally and securing customer qualification. Lumentum is also managing constraints involving reactors, e-beam lithography tools and indium phosphide substrates.

Cloud Light Progress and Industry Risks Hurlston said Lumentum’s Cloud Light module business has improved after earlier quality and time-to-market challenges. Following the acquisition of Cloud Light, quarterly revenue fell below $50 million because of quality issues, he said. The business has since improved quality and engineering execution, and is now running at more than $200 million in quarterly revenue.

The company has begun shipping 1.6T modules and is ahead of competitors on certain stock-keeping units, according to Hurlston. He said the next priority is improving gross margins in the module business.

On geopolitical risks, Hurlston said Lumentum could be a net beneficiary if the U.S. restricts Chinese transceiver suppliers, but cautioned that Chinese companies account for 70% of transceivers in the U.S. market. A sudden loss of that supply could disrupt hyperscalers and would require a measured policy approach, he said.

Looking ahead, Hurlston said investors should watch for optical connectivity moving beyond backplanes and into trays, where it could connect GPUs and memory. “Does this thing really take hold?” he said. “Are you going to see optics actually go in tray and serve this high bandwidth connectivity between memory and between GPUs?”

About Lumentum (NASDAQ:LITE)Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.

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Bluefin Capital Management LLC purchased a new position in shares of Lumentum Holdings Inc. (NASDAQ:LITE – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 1,089 shares of the technology company’s stock, valued at approximately $934,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Advisors Asset Management Inc. grew its position in shares of Lumentum by 36.8% during the 1st quarter. Advisors Asset Management Inc. now owns 945 shares of the technology company’s stock valued at $59,000 after acquiring an additional 254 shares during the period. NewEdge Advisors LLC raised its holdings in Lumentum by 109.9% in the 1st quarter. NewEdge Advisors LLC now owns 11,986 shares of the technology company’s stock worth $747,000 after purchasing an additional 6,275 shares during the period. Empowered Funds LLC boosted its position in Lumentum by 9.1% during the first quarter. Empowered Funds LLC now owns 8,139 shares of the technology company’s stock worth $507,000 after purchasing an additional 680 shares in the last quarter. Hsbc Holdings PLC purchased a new position in Lumentum during the second quarter worth approximately $298,000. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in Lumentum in the second quarter valued at approximately $1,712,000. Hedge funds and other institutional investors own 94.05% of the company’s stock.

Lumentum Trading Down 6.4% Shares of LITE opened at $895.00 on Friday. Lumentum Holdings Inc. has a 52-week low of $125.00 and a 52-week high of $1,085.68. The company has a quick ratio of 1.40, a current ratio of 1.68 and a debt-to-equity ratio of 0.01. The firm’s fifty day moving average is $811.83 and its two-hundred day moving average is $805.08. The stock has a market cap of $80.28 billion, a PE ratio of -10.89 and a beta of 1.50.

Lumentum (NASDAQ:LITE – Get Free Report) last issued its earnings results on Tuesday, August 11th. The technology company reported $3.23 EPS for the quarter, beating analysts’ consensus estimates of $2.97 by $0.26. The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $987.70 million. Lumentum had a negative net margin of 230.15% and a positive return on equity of 26.34%. The company’s quarterly revenue was up 109.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.88 earnings per share. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Research analysts forecast that Lumentum Holdings Inc. will post 19.76 earnings per share for the current fiscal year. Key Headlines Impacting Lumentum Here are the key news stories impacting Lumentum this week:

Positive Sentiment: AI infrastructure demand remains the core bullish driver. Lumentum supplies optical components used in high-speed data-center networks, and investors continue to view its 1.6T transceivers and 200G lasers as beneficiaries of accelerating AI-networking demand. Positive Sentiment: Recent operating results provide support. Lumentum’s latest quarter exceeded expectations, with $3.23 in adjusted earnings per share versus a $2.97 consensus estimate and revenue of $1.01 billion, up 109.3% year over year. Q1 fiscal 2027 EPS guidance of $4.05–$4.35 also remains encouraging. Neutral Sentiment: Management’s technology-conference appearance offered no clearly new catalyst. Lumentum presented at the Deutsche Bank 2026 Technology Conference, where investors focused on its AI-product outlook, capacity expansion and execution. The supplied transcript did not identify a specific new forecast or announcement. Lumentum Deutsche Bank Technology Conference Transcript Negative Sentiment: Sector-wide risk-off trading pressured the stock. Applied Optoelectronics and Lumentum reportedly fell about 6%, while Coherent declined about 5%, as the optics stocks that led the August rally pulled back together. A Barron’s report suggested the declines reflected peer-related sympathy selling rather than company-specific news. Optics Stocks Slide as AI Hardware Trade Cools Negative Sentiment: Several insiders sold shares. SVP Jae Kim sold 12,000 shares for approximately $10.2 million, while Vincent Retort sold 38,663 shares for about $33.0 million. CEO Michael Hurlston sold 548 shares for roughly $525,000. The transactions were conducted under pre-arranged Rule 10b5-1 plans, limiting their value as a discretionary bearish signal, but they add a modest overhang after the stock’s substantial rally. SEC CEO Insider Trading Filing Negative Sentiment: Valuation and competition heighten volatility. With LITE trading near its 52-week high, investors may be particularly sensitive to profit-taking, execution problems or competition from Cisco and NVIDIA in AI connectivity. Insiders Place Their Bets In other news, CEO Michael E. Hurlston sold 548 shares of the business’s stock in a transaction that occurred on Thursday, August 27th. The stock was sold at an average price of $958.66, for a total transaction of $525,345.68. Following the transaction, the chief executive officer directly owned 186,951 shares in the company, valued at $179,222,445.66. The trade was a 0.29% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Jae Kim sold 12,000 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $852.58, for a total value of $10,230,960.00. Following the completion of the sale, the senior vice president directly owned 37,804 shares of the company’s stock, valued at approximately $32,230,934.32. This represents a 24.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 64,563 shares of company stock worth $55,448,750. 0.43% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In LITE has been the subject of a number of recent analyst reports. Needham & Company LLC restated a “buy” rating and issued a $1,040.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Bank of America dropped their price target on shares of Lumentum from $1,100.00 to $1,000.00 and set a “neutral” rating on the stock in a research note on Wednesday, August 12th. Rosenblatt Securities reissued a “buy” rating and issued a $1,300.00 price target on shares of Lumentum in a report on Wednesday, August 12th. Raymond James Financial restated an “outperform” rating and set a $1,036.00 price objective on shares of Lumentum in a research report on Wednesday, August 12th. Finally, Loop Capital boosted their target price on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Lumentum presently has an average rating of “Moderate Buy” and a consensus price target of $1,044.67.

View Our Latest Report on Lumentum

Lumentum Company Profile (Free Report)

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.

Further Reading Five stocks we like better than Lumentum From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens These 3 GARP Stocks Show Why Growth and Value Do Not Have to Clash Venture Into High-Volatility Corners of the Market With These 3 ETFs 3 Retail Stocks to Watch After a Big Consumer Earnings Week Want to see what other hedge funds are holding LITE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lumentum Holdings Inc. (NASDAQ:LITE – Free Report).

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Michael E. Hurlston, the president and CEO of Lumentum Holdings Inc. (LITE -1.43%), disposed of 6,185 shares of common stock on August 19, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$5.1 millionShares sold6,185Post-transaction shares (directly held)112,794Post-transaction value$93.35 millionTransaction value based on SEC Form 4 weighted average sale price ($827.60); post-transaction value based on the August 19 market close ($827.60).

Key questionsWhat was the technical driver for this share disposition?
The disposition was a non-discretionary transfer executed to satisfy income tax withholding and remittance obligations triggered by the vesting of restricted stock units.What is the status of the insider's remaining equity exposure?
Following this transaction, Hurlston retains direct ownership of 112,794 shares of common stock, which represents a 0.14% interest in the company.How has the security performed leading up to this vesting event?
As of the August 19 transaction date, the stock had delivered a one-year total return of 602%.Does the executive hold other forms of equity compensation?
Beyond the reported common stock position, the President and CEO also holds derivative securities in the form of unvested equity awards that contribute to his total beneficial ownership.Company OverviewMetricValueShare Price (as of market close 2026-08-20)$879.28Market Capitalization$68.4 billionRevenue (TTM)$3.0 billionNet Income (TTM)-$6.9 billionCompany SnapshotLumentum manufactures optical and photonic products through two principal business segments: Optical Communications (OpComms), which supplies components, modules, and subsystems for transmitting video, audio, and data across networks, and Commercial Lasers, which serves industrial and commercial applications.The company generates revenue through the design, development, and sale of specialized optical and photonic components and systems to telecommunications infrastructure providers, data center operators, and industrial customers globally.Lumentum's primary customers include major telecommunications equipment manufacturers, cloud service providers, and data center operators across the Americas, Asia-Pacific, Europe, the Middle East, and Africa.Lumentum Holdings Inc. is a global leader in optical and photonic product manufacturing with a market capitalization of $68.4 billion and approximately 10,562 employees. The company leverages advanced photonic technology to address critical infrastructure demands in telecommunications and industrial markets, positioning itself at the intersection of 5G deployment, data center expansion, and industrial automation. Lumentum's competitive advantage derives from its specialized expertise in optical component design and manufacturing, enabling it to serve as a critical supplier to the world's largest telecommunications and technology infrastructure providers.

What this transaction means for investorsHurlston handed back 6,185 shares to cover taxes when restricted stock vested on August 19, and he still holds 112,794 directly. Notably, the stock's run is so staggering it's showing up in the financials, including Lumentum's convertible notes, which went in the money and prompted management to equitize a chunk of them in the June quarter. That cut debt by $1.1 billion and booked a $7.8 billion non-cash charge, turning a strong quarter into a $7.2 billion GAAP net loss.

Underneath it, revenue reached $1.01 billion, up 109% year over year, with non-GAAP operating margin at 36.6% against 15% a year earlier. Guidance for the September quarter calls for about $1.25 billion and margins of 39.5% to 40.5%, hitting the target model a quarter early, with much more booming demand to go. Hurlston told analysts on the August 11 call that Lumentum is "way behind" on high-powered laser shipments. To help bridge that gap, the company went out for more indium phosphide substrate from AXT

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum. The Motley Fool has a disclosure policy.

Vincent Retort, vice president of global reliability and quality at Lumentum Holdings Inc. (LITE -1.43%), disposed of 12,566 shares of common stock on August 19 and August 20, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueShares sold12,566Transaction value$10.7 millionPost-transaction shares (directly held)101,929Post-transaction value$88.34 millionTransaction value based on SEC Form 4 weighted average sale price ($851.01); post-transaction value based on the August 21 market close ($866.71).

Key questionsWhat was the primary driver of this equity disposition?
The majority of the shares were withheld by the issuer to satisfy income tax withholding and remittance obligations in connection with the vesting of restricted stock units, while the remaining 2,483 shares were sold pursuant to a Rule 10b5-1 trading plan adopted on November 13, 2025.How significant is the insider's remaining direct equity position?
Following these transactions, the insider retains 102,000 shares of common stock, representing a direct stake with a market value of $88.34 million as of the August 21 market close.What is the current market context for this disposition?
The shares were disposed of at a weighted average price of $851.01, occurring as the company recorded a 638% one-year total return as of the August 21 filing date.Does the insider maintain any indirect equity interests?
The filing indicates that the insider's entire equity position is held directly, with no indirect holdings reported through trusts or other legal entities.Company OverviewMetricValueShare Price (as of market close 2026-08-20)$879.28Market Capitalization$68.4 billionRevenue (TTM)$3.0 billionNet Income (TTM)-$6.9 billionCompany SnapshotLumentum Holdings Inc. designs and manufactures optical and photonic products for communication infrastructure, including components, modules, and subsystems for the Optical Communications segment, as well as commercial laser solutions that serve diverse industrial and scientific applications.The company operates a vertically integrated business model generating revenue through two principal segments: Optical Communications, which supplies critical transmission components for data centers and telecommunications networks, and Commercial Lasers, which provides laser-based solutions for industrial and scientific markets.Lumentum's primary customers include major telecommunications carriers, data center operators, cloud service providers, and industrial manufacturers globally, with significant exposure to Asia-Pacific, Americas, Europe, the Middle East, and Africa.Lumentum Holdings Inc. is a global leader in optical and photonic product manufacturing with a market capitalization of $68.4 billion and approximately 10,562 employees. The company leverages advanced photonic technologies to address the growing demand for high-speed data transmission and industrial laser applications, positioning itself at the intersection of telecommunications infrastructure and emerging industrial automation trends. With TTM revenue of $3.0 billion, Lumentum maintains a strategic focus on innovation and market expansion within the communication equipment sector.

What this transaction means for investorsRetort sold 2,483 shares under a 10b5-1 plan he adopted on November 13, 2025, and had the other 10,083 withheld by Lumentum to cover taxes when his restricted stock vested. Plus, he still holds 102,000 shares, which is more than any of the three executives who filed alongside him this week.

Retort runs global reliability and quality, which is the function Lumentum's pitch to customers rests on. Michael Hurlston, president and CEO, told analysts on the August 11 earnings call that the company's lasers "simply don't deviate," and that the narrow spec width gives customers better yields when they build transceivers around them. That consistency is why Lumentum has been able to charge a premium for its continuous-wave lasers even as Chinese suppliers stand up competing indium phosphide fabs. That said, the pressure on that comes from volume. Lumentum is expanding both of its Japanese wafer fabs and converting a Greensboro facility, while moving pump laser output into Thailand for packaging and tests, and shipping behind demand across several product lines. Non-GAAP gross margin reached 50.4% in the quarter, up from 37.8% a year ago, and holding it through that ramp is the thing worth watching.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum. The Motley Fool has a disclosure policy.

Avanda Investment Management Pte. Ltd. acquired a new position in Lumentum Holdings Inc. (NASDAQ:LITE – Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 600 shares of the technology company’s stock, valued at approximately $515,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Arrowstreet Capital Limited Partnership increased its position in Lumentum by 8,579.2% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,563,210 shares of the technology company’s stock worth $254,350,000 after purchasing an additional 1,545,199 shares during the period. Norges Bank acquired a new stake in shares of Lumentum during the 4th quarter worth approximately $474,495,000. Value Aligned Research Advisors LLC bought a new stake in shares of Lumentum during the fourth quarter worth approximately $432,062,000. Situational Awareness LP lifted its holdings in Lumentum by 210.9% in the fourth quarter. Situational Awareness LP now owns 1,298,400 shares of the technology company’s stock valued at $478,577,000 after buying an additional 880,800 shares during the period. Finally, Aspex Management HK Ltd bought a new position in Lumentum in the fourth quarter valued at approximately $251,363,000. 94.05% of the stock is currently owned by institutional investors and hedge funds.

Lumentum Trading Down 1.4% Shares of LITE opened at $866.71 on Friday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.40 and a current ratio of 1.68. Lumentum Holdings Inc. has a 52-week low of $115.89 and a 52-week high of $1,085.68. The firm has a market cap of $77.74 billion, a price-to-earnings ratio of -10.54 and a beta of 1.50. The business’s fifty day moving average is $809.76 and its 200-day moving average is $790.21.

Lumentum (NASDAQ:LITE – Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The technology company reported $3.23 earnings per share for the quarter, topping the consensus estimate of $2.97 by $0.26. Lumentum had a positive return on equity of 26.34% and a negative net margin of 230.15%.The company had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $987.70 million. During the same period in the previous year, the business posted $0.88 earnings per share. The business’s quarterly revenue was up 109.3% compared to the same quarter last year. Lumentum has set its Q1 2027 guidance at 4.050-4.350 EPS. Equities analysts anticipate that Lumentum Holdings Inc. will post 19.76 EPS for the current fiscal year. Insider Activity at Lumentum In related news, SVP Jae Kim sold 1,904 shares of Lumentum stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $827.82, for a total value of $1,576,169.28. Following the completion of the sale, the senior vice president owned 42,096 shares of the company’s stock, valued at approximately $34,847,910.72. This trade represents a 4.33% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Yuen Wupen sold 1,500 shares of the business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $827.82, for a total transaction of $1,241,730.00. Following the sale, the insider directly owned 100,434 shares of the company’s stock, valued at approximately $83,141,273.88. The trade was a 1.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 16,352 shares of company stock worth $14,315,562 over the last quarter. Company insiders own 0.43% of the company’s stock.

Analysts Set New Price Targets A number of equities analysts have issued reports on LITE shares. Raymond James Financial restated an “outperform” rating and set a $1,036.00 target price on shares of Lumentum in a report on Wednesday, August 12th. Weiss Ratings cut shares of Lumentum from a “hold (c-)” rating to a “sell (d-)” rating in a report on Wednesday. Loop Capital increased their target price on shares of Lumentum from $900.00 to $1,400.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Rosenblatt Securities reissued a “buy” rating and issued a $1,300.00 target price on shares of Lumentum in a research note on Wednesday, August 12th. Finally, Barclays raised their price target on Lumentum from $750.00 to $1,000.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 6th. Thirteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Lumentum presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,044.67.

Check Out Our Latest Research Report on LITE

Key Lumentum News Here are the key news stories impacting Lumentum this week:

Positive Sentiment: Northland Securities raised its Lumentum earnings forecasts substantially. The firm lifted its FY2027 EPS estimate to $19.81 from $14.97, with quarterly estimates now ranging from $3.81 in Q1 to $6.20 in Q4. Northland maintained an “Outperform” rating and a $1,200 price target, supporting the bullish case for continued earnings growth. Northland Securities analyst estimate report Positive Sentiment: Lumentum is being highlighted as an AI-infrastructure beneficiary. Analysts and financial publications point to rising demand for optical networking equipment as data centers expand to support artificial intelligence workloads. Lumentum is positioned across the optics and networking portions of that buildout. Beyond Chipmakers: 4 Stocks to Buy That Power AI Data Center Expansion Positive Sentiment: LITE was added to Zacks’ Rank #1 momentum-stock list. The designation may attract momentum-oriented investors and reinforces the stock’s strong recent performance. Best Momentum Stocks to Buy for August 21st Neutral Sentiment: A report on data-center construction emphasized the enormous fiber requirements of new AI facilities, a potential long-term demand driver for optical-component suppliers such as Lumentum. However, the article provided limited company-specific financial updates. A Single Meta Data Center Will Require “8 Million Miles of Fiber” Negative Sentiment: Valuation concerns could be limiting further upside. A Seeking Alpha analysis characterized Lumentum as increasingly expensive after its sharp rally. With the shares near their 52-week high and the company still reporting a negative net margin, some investors may be taking profits despite the favorable growth outlook. Lumentum: It’s Getting Expensive Lumentum Company Profile (Free Report)

Lumentum Holdings Inc, headquartered in San Jose, California, is a leading provider of photonic technologies that enable high-speed optical communication networks and advanced industrial applications. The company designs and manufactures a broad range of lasers, optical modules and subsystems tailored to the evolving requirements of telecommunications carriers, cloud data centers and enterprise networking.

Its core product portfolio includes tunable and fixed-wavelength laser transmitters, coherent optical engines, transceivers for long-haul, metro and data center interconnects, as well as test and measurement instruments.

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Key Takeaways Lumentum's revenues surged 109% as AI workloads drove demand for faster optical data-center links. AAOI's growth is strong, but capacity and supply constraints are limiting its ability to meet demand. Lumentum's 2026 earnings estimate rose 3.02%, while AAOI's estimate remained unchanged. Applied Optoelectronics (AAOI - Free Report) and Lumentum (LITE - Free Report) are key suppliers in the optical networking market. While Applied Optoelectronics specializes in high-speed optical transceivers, laser components, and other fiber-optic networking products that enable AI data center connectivity, Lumentum offers optical and photonic components that support similar high-speed data-center and telecommunications applications.

Applied Optoelectronics or Lumentum — Which of these Optical Networking stocks has the greater upside potential? Let’s find out.

The Case for AAOI StockApplied Optoelectronics is benefiting from the strong momentum in the optical networking market, driven by surging demand for next-generation data center and CATV (cable TV) solutions. In the second quarter of 2026, Datacenter revenues reached $107.66 million, up 140.4% year over year and 32.3% sequentially. The business accounted for 56% of total revenues, supported by stronger shipments of high-speed optical transceivers used in AI-focused infrastructure.

The surge in AI infrastructure deployments that require high-speed optical transceivers has been a major growth driver. This demand is particularly strong for next-generation products such as 400G, 800G, and 1.6T transceivers, which are essential for hyperscale data centers supporting AI workloads.  In the second quarter of 2026, 800G revenues were $12.8 million, representing 11.9% of datacenter revenues, and more than doubled sequentially. Meanwhile, 400G revenues totaled $48.4 million, rising more than fourfold year over year and 27.4% sequentially.

In the CATV segment, AAOI achieved record revenues of $80.6 million in the second quarter of 2026, up 43.8% year over year, and secured major wins such as being selected by Mediacom for DOCSIS 4.0 network upgrades. The company’s QuantumLink software and next-generation amplifiers are gaining traction with multiple system operators, providing a diversified revenue base and reducing reliance on any single market segment. AAOI expects CATV revenues to be between $100 million and $110 million in the third quarter of 2026 and expects to generate over $325 million annually in this segment.

The Case for LITE StockLumentum is benefiting from strong demand for its optical components and systems, driven by the industry shift to AI workloads and increased data center connectivity. In the fourth quarter of fiscal 2026, the company reported a 109% year-over-year revenue surge to $1.01 billion, marking its eighth consecutive quarter of top-line growth. This momentum is driven by the accelerating adoption of optical links in data centers, fueled by the rise of AI workloads that demand higher speed and bandwidth.

Key growth drivers include record shipments of 800G cloud transceivers and the launch of next-generation 1.6T modules, as well as strong demand for both EML and CW laser chips. LITE’s pump laser shipments surged more than 80% year over year in the fourth quarter of fiscal 2026, and the company remains effectively sold out despite rapid capacity expansion. Strategic long-term agreements with major customers further secure future demand and support ongoing capital investments.

The market’s shift toward near-packaged optics (NPO) and co-packaged optics (CPO) is also playing directly to LITE’s strengths. Customers are increasingly adopting these architectures as intermediate steps to full CPO deployment, significantly expanding the total addressable market for optical solutions. The company is already seeing strong NPO momentum across multiple high-velocity engagements, leveraging its industry-leading laser chip technology. Lumentum expects a fourfold increase in pump laser shipments over the next several quarters and is expanding capacity at its wafer fabs to capture the coming 200-gig and 300-gig lane speed opportunities.

Price Performance and Valuation of AAOI and LITEIn the trailing 12-month period, AAOI shares have gained 499.3%, underperforming LITE shares, which have risen 653.6%. Lumentum is benefiting from the rapid expansion of AI and cloud infrastructure, which is increasing bandwidth requirements within data centers and accelerating the shift from electrical to optical connectivity.

Despite its expanding portfolio, AAOI is suffering from production capacity and key component supply constraints, which have limited its ability to meet surging customer demand for next-generation AI infrastructure products. The company also faced temporary setbacks in its 100G product line in the second quarter of 2026 due to a memory shortage affecting customers’ ability to source switches. This is likely to result in a $20–25 million revenue shortfall in the third quarter of 2026. Operating expenses were also higher than expected, due to increased shipping costs and elevated R&D spending to qualify new products.

AAOI and LITE Stock Performance
Image Source: Zacks Investment Research

Both AAOI and LITE shares are currently overvalued, as suggested by a Value Score of F.

In terms of forward 12-month Price/Sales, AAOI shares are trading at 5.97X, lower than LITE’s 10.26X.

AAOI and LITE Valuation
Image Source: Zacks Investment Research

How Do Earnings Estimates Compare for AAOI & LITE?The Zacks Consensus Estimate for AAOI’s 2026 earnings is pegged at 95 cents per share, which has been unchanged over the past 30 days. This indicates a 465.38% increase year over year.

The Zacks Consensus Estimate for LITE’s 2026 earnings is pegged at $18.71 per share, which has increased 3.02% over the past 30 days. This indicates a 115.80% increase year over year.

ConclusionWhile both AAOI and LITE stand to benefit from robust AI-driven optical networking demand, Lumentum appears better positioned, backed by stronger earnings growth, rising estimates and accelerating demand for next-generation optical solutions.

Despite AAOI’s expanding portfolio intensifying competition from larger rivals, production capacity constraints and supply chain challenges remain headwinds that could hurt the company’s financial performance.

Currently, Lumentum has a Zacks Rank #2 (Buy), making the stock a stronger pick than Applied Optoelectronics, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CONFERENCE CALL FOR INVESTORS: AUGUST 19, 2026, AT 4:00 PM EDT  | Source: Omni-Lite Industries Canada, Inc.

Second Quarter Fiscal 2026 Highlights

Record Revenue: US$4.8 million, representing a 39% increase over the year-ago period.Record Profitability: Adjusted EBITDA(1) of approximately US$926,000, yielding a 19.3% Adjusted EBITDA margin.Strong Demand: Bookings of US$6.4 million, representing a 1.34 Book-to-Bill ratio.Record Backlog: Total backlog reached US$10.7 million.Robust Liquidity: Cash balance of US$3.1 million with zero outstanding indebtedness. Year-To-Date Fiscal 2026 Highlights

Revenue: US$9.2 million.Adjusted EBITDA(1): US$1.8 million, yielding a 19.4% Adjusted EBITDA margin.Bookings: US$11.3 million, representing a 1.23 Book-to-Bill ratio. LOS ANGELES, CALIFORNIA , Aug. 19, 2026 (GLOBE NEWSWIRE) -- Omni-Lite Industries Canada Inc. (the "Company" or “Omni-Lite”; TSXV: OML) today reported its financial results for the second quarter ending June 30, 2026. Full financial statements and management’s discussion and analysis are available on SEDAR+ at sedarplus.ca.

Revenue
Revenue for the second quarter of fiscal 2026 was approximately US$4.8 million, up 39% compared to the second quarter of fiscal 2025. This growth was primarily driven by strong organic expansion within the Company's fasteners and electronic components business segments.

Adjusted EBITDA and Cash Flow
Adjusted EBITDA(1) for the quarter rose to approximately US$926,000, marking an $830,000 increase over the second quarter of fiscal 2025. Free Cash Flow(1) came in at approximately US$117,000, improving by roughly US$140,000 year-over-year. Free cash flow performance reflected intentional investments in working capital and manufacturing productivity to support the expanding order book.

Balance Sheet Strength
The Company maintains a highly stable financial position, concluding the quarter with US$3.1 million in cash with no outstanding debt.

Orders and Backlog
New orders outpaced shipments during the period, with second-quarter bookings reaching approximately US$6.4 million. Consequently, the Company’s total backlog as of June 30, 2026, expanded to a record-breaking US$10.7 million, an increase of US$4.9 million compared to the same period last year. 

Management and Governance Update
"We delivered record revenue and healthy margins in the second quarter and first half of fiscal 2026," stated David Robbins, Interim CEO of Omni-Lite. "This performance is a direct result of our pricing and manufacturing discipline, allowing us to efficiently scale operations to satisfy strong customer demand."

The Board of Directors also provided an update regarding its ongoing leadership transition. The Board continues to execute its CEO succession plan and remains confident in its ability to identify the right permanent candidate through an orderly and deliberate process. The Board and management emphasize that the Company remains on an exceptionally strong operational and financial footing while the search progresses.

Investor Conference Call
Omni-Lite will host a conference call for investors and analysts today, August 19, 2026, at 4:00 PM EDT to discuss these financial results and answer participant questions. To join the conference call, dial (800) 715-9871 in the USA (toll-free), or dial (646) 307-1963 for all other countries (toll). Please call five to ten minutes prior to the scheduled start time.

For further information, please contact:

Mr. David Robbins
Chief Executive Officer
Tel. No. (562) 404-8510 or (800) 577-6664
Email: [email protected]
Website: www.omni-lite.com

(1)

  Three Months Ended June 30,   Six Months Ended June 30,   2026   2025   2026   2025 Net Income/(Loss) $518    $        (166)    $           922    $           (58)    Adjustments:                Interest Expense, Net 124   97   245   238       Income Tax Provision 231   60   516   132 Operating Income  $           873    $             (9)    $        1,683    $           312        Depreciation 282   286   561   555        Amortization 0   12   0   24 EBITDA  $        1,155    $          289    $        2,244    $           891    Adjustments:                     Lease Expense (1)             (229)              (194)               (460)               (388)      Stock-based Compensation 0   0   0   0 Adjusted EBITDA (2)  $           926    $             95    $        1,784    $           503 Revenue  $        4,795    $       3,459    $        9,178    $        6,766       Net Income margin 10.8%   -4.8%   10.0%   -0.9%      Adjusted EBITDA margin 19.3%   2.7%   19.4%   7.4%

(1)Non-IFRS Financial Measures: Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow are non-IFRS financial measures and do not have standardized meanings prescribed by IFRS. Please refer to the Company's MD&A on sedarplus.ca for definitions and reconciliations of these terms to the most directly comparable IFRS measures.

Forward Looking Statements
Except for statements of historical fact, this news release contains certain “forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intent”, “believe”, “anticipate”, “estimate” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking information in this press release includes, but is not limited to, the expected future performance of the Company. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance, or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward- looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward- looking information include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, governmental regulation, including environmental consents and approvals, if and when required; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Michael E. Hurlston, President and Chief Executive Officer, disposed of 5,438 shares of Lumentum Holdings Inc. (LITE -9.87%) on August 15, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value~$5.0 millionShares sold (directly held)5,438Post-transaction shares (directly held)118,979Post-transaction value~$115.28 millionTransaction value based on SEC Form 4 weighted average sale price ($926.14).

Key questionsHow does this transaction affect the CEO's equity exposure?
The disposal represents a 4% reduction in direct common stock holdings, leaving Michael Hurlston with ~119,000 shares held directly.What was the nature of the transaction?
The sale was a non-discretionary transaction triggered by the vesting of restricted stock units (RSUs), where shares were withheld to satisfy mandatory tax obligations.What is the company's current market standing?
Headquartered in San Jose, Lumentum Holdings Inc. is a global leader in optical and photonic product manufacturing with a market cap of $75.4 billion as of the August 17, 2026 market close.Company OverviewMetricValueShare Price (as of market close 2026-08-17)$968.90Market Capitalization$75.4 billionRevenue (TTM)$3.0 billionNet Income (TTM)-$6.9 billionCompany SnapshotLumentum designs and manufactures optical and photonic components, modules, and subsystems for optical communications infrastructure, serving as a critical supplier of transmission equipment for video, audio, and data delivery across global networks.The company generates revenue through the sale of specialized optical components and laser-based solutions to telecommunications carriers, data center operators, and industrial customers.Lumentum serves a diverse customer base including major telecommunications service providers, cloud computing infrastructure operators, and industrial manufacturers across the Americas, Asia-Pacific, Europe, the Middle East, and Africa.Lumentum Holdings Inc. is a global leader in optical and photonic product manufacturing with a workforce of 10,562 employees. The company leverages its specialized expertise in optical communications technology to address the growing demand for high-speed data transmission infrastructure driven by cloud computing, 5G deployment, and digital transformation initiatives.

Lumentum's competitive positioning is anchored in its advanced manufacturing capabilities, proprietary photonic technologies, and established relationships with tier-one telecommunications and data center operators worldwide.

What this transaction means for investorsThe Aug. 15 sale of Lumentum stock by CEO Michael Hurlston is not a cause for investor concern. The transaction was executed to fulfill tax withholding obligations in connection with the vesting of RSUs.

An RSU is a form of employee compensation where a company grants an employee shares of stock at a future date. When that vesting date arrives, as was the case here, a "sell to cover" transaction occurs to pay the related taxes.

Post-disposition, Hurlston retains a robust equity stake in the company with nearly 119,000 directly held shares. This indicates he maintains continued alignment with shareholder interests.

Lumentum stock is having a banner year with shares up over 600% in the past 12 months through Aug. 18, thanks to spectacular sales performance. With the rise of artificial intelligence, demand for the company's high-speed optical and photonic products has skyrocketed.

As a result, in Lumentum's fiscal fourth quarter, ended June 27, it reported $1 billion in revenue, an impressive increase over the $480.7 million generated in the prior year.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lumentum. The Motley Fool has a disclosure policy.

18.8.2026 22:02

Trhy v zámoří ke konci obchodní seance se začaly „uklidňovat“ přičemž je mírně uklidnil vývoj ceny ropy. Ta se nakonec posunula do mírně kladných čísel (WTI +0,41 %), a to díky komentářům prezidenta Trumpa ohledně vývoje v Hormuzu. Přesto indexy skončily v červených číslech a obzvláště čipovému sektoru se dnes nedařilo díky stálé obavě o kapitálových nákladech na AI infrastrukturu.

Proti proudu šly akcie Apple, které končí v kladných číslech (+1,45 %) Podobně tak i defenzivní sektor, kde kupříkladu Mastercard přidal +2,15 %.

V záporném teritoriu končí také cenné kovy, kdy zlato odepsalo - 1,65 % a stříbro výrazných -3,88 %. Mírně v kladných hodnotách končí kryptoměny, kde Bitcoin přidává +0,4 %. 

Index Dow Jones -0,22 % na 53343,64 b.
S&P 500 -0,69 % na 7691,92 b.
Nasdaq Composite -1,33 % na 26289,71 b.

Index S&P 500 -0,69 % na 7691,92 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,8 % Informační technologie -1,9 % Zdravotní péče +1,6 % Průmysl -1,5 % Nezbytná spotřeba +1,1 % Základní materiály -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Targa Resources Corp (TRGP) +7,1 % Coherent Corp (COHR) -13 % Insulet Corp (PODD) +6,0 % Lumentum Holdings (LITE) -9,9 % Ulta Beauty (ULTA) +4,8 % Seagate Technology Holdings (STX) -9,2 % Intuit (INTU) +4,4 % Sandisk Corp (SNDK) -9,0 % Monster Beverage Corp (MNST) +4,1 % Ciena Corp (CIEN) -8,9 %
Jan Pazourek, Fio banka, a.s.

Optics stocks are getting hit hard at midday Tuesday as a risk-off wave washes through AI hardware names. Lumentum (NASDAQ:LITE | LITE Price Prediction) is down 10.1%, Corning (NYSE:GLW) is off 8.2%, and AXT (NASDAQ:AXTI) is down 12.5%. Lumentum last traded near $877, AXT near $84.

Anthropic Numbers and a WSJ Bombshell Trigger the Rotation The catalyst is largely macro, not optics-specific in origin.

Anthropic told investors over the weekend that its annualized revenue reached $65 billion at the end of July, a huge number but below the whisper figures circulating in Silicon Valley. On the All In Podcast, Gavin Baker said he had heard Anthropic’s ARR was over $80 billion. Reuters then reported the company is estimating 2028 revenue of $190 billion to $200 billion, again a massive growth rate but likely behind buyside models. Baker and David Sacks said on the same show they expected Anthropic to exit next year at an ARR of $400 billion to $500 billion.

Sacks and Baker don’t speak for all of Silicon Valley, but their optimism vs. published figures is a disconnect that likely reflects what has been ‘priced into’ stocks versus what was just announced. Recent ARR figures reported for OpenAI (about $40 billion), are also ‘disappointing’ versus the amount of spend the company is spinning up.

Layered on top, the Wall Street Journal detailed how AI infrastructure liabilities are ballooning off the books. “Nine top tech companies had some $3 trillion of off-balance-sheet commitments mostly related to AI, according to a Wall Street Journal analysis of footnotes in their most recent securities filings. Those obligations are growing faster than traditional ‘capex,’ which totaled about $600 billion over the past year they reported, and were about triple what the companies owe under their outstanding leases and long-term borrowings.”

That capex is exactly what feeds the optics supply chain, and we profiled seven of the non-chip suppliers riding it in a free report here. Rates are not helping either. The 30-year Treasury hit 5.31% on Monday, a fresh multi-year high that pressures every long-duration growth name.

A Rotation Driven by Positioning Nothing has changed about the indium phosphide picture in 24 hours. Yesterday, AXT led the group higher on reports of InP shortages and price hikes, dragging Coherent and Lumentum with it (our coverage here). The stocks that ran hardest into today are giving back the most. Lumentum is still up 19% over the past week and 163% year to date. AXT is up 109% over the past month and 487% year to date. Corning is up 98% year to date. That is a lot of profit to defend on a risk-off day.

One added weight on the group is Fabrinet (NYSE:FN), which reported after Monday’s close and is down about 20% despite a clear beat. Fabrinet posted record Q4 revenue of $1.316 billion, up 45% year over year and above the guidance range, non-GAAP EPS of $4.10 versus $2.65 a year ago, and full fiscal 2026 revenue up 36% to $4.64 billion. Fiscal Q1 2027 guidance is $1.375 billion to $1.425 billion. Investors appear to be reading that as conservative for a stock that had run hard, and on a day like this that is enough.

The fundamentals under Lumentum, Corning, and AXT remain intact. Lumentum guided Q1 FY2027 revenue to $1.225 billion to $1.275 billion with the CEO saying the company is “reaching our target model more than a quarter ahead of schedule.” (see Lumentum’s Q4 FY2026 8-K filing on SEC.gov). Corning upgraded its Springboard Plan to a $20 billion annualized run rate by end of 2026 and $40 billion by end of 2030. AXT posted Q2 revenue of $47.59 million, up 165% year over year.

What to Watch Watch whether investors continue broadly rotating. A look at an S&P 500 heat map tells the story today. Semiconductors are down across the board, and most software is up. We’ve seen this rotation play out again and again. Likewise, investors are rotating to sectors like Healthcare, Industrials, Consumer Defense, Energy, and Financials that are largely seen as defensive. Nothing has ‘changed’ with optics since yesterday, but investors are repositioning based upon a higher level of fear from both reporting and rising interest rates.

If the 30-year gives back some of its move, expect the optics group to stabilize. If yields press higher, the profit-taking has more room to run.

Contact [email protected] for any questions or corrections.

17.8.2026 20:02

Americké akciové trhy dnes ztrácejí, když obnovené napětí na Blízkém východě, růst cen ropy a vyšší dlouhé dluhopisové výnosy převážují nad pokračujícím optimismem kolem umělé inteligence. S&P 500 klesá o 0,4 %, Nasdaq 100 odepisuje 0,3 %, Dow Jones ztrácí 0,6 % a MSCI World oslabuje o 0,3 %. Investory znejistily nové boje mezi Izraelem a Íránem podporovaným Hizballáhem v Libanonu i výroky prezidenta Donalda Trumpa, že nespěchá s ukončením války s Íránem. Výnos amerického desetiletého dluhopisu se znovu drží nad 4,7 %, což vytváří protivítr pro akcie, zejména po předchozím růstu trhu k rekordním úrovním. Tento týden bude pozornost směřovat k zápisu z posledního zasedání Fedu a výsledkům maloobchodních firem, jako jsou Walmart (WMT -0,95 %), Home Depot (HD -0,68 %) a Target (-1,62 %), které mají ukázat, zda slabší maloobchodní tržby byly jednorázovým výkyvem, nebo signálem horší kondice spotřebitele.

Sektorově je dnešní obchodování rozdělené. Většina titulů v indexu S&P 500 klesá, ale polovodiče táhnou technologický sektor do kladné nuly. Philadelphia Semiconductor Index přidává zhruba 2 %, když sentiment podpořila zpráva o prudkém růstu tržeb společnosti Anthropic. Naopak širší trh tíží dražší ropa a růst výnosů. Brent se vyšplhal k 90 USD za barel a WTI roste o 1,8 % na 83,90 USD, což obnovuje obavy z inflačních tlaků a možného dopadu na sazby Fedu. Výnos desetiletého amerického dluhopisu stoupá o 2 bazické body na 4,71 %. Třicetiletý americký výnos přidává 4 bazické body na 5,30 %, nejvýše od roku 2007. Bitcoin roste o 1,8 % na 64 176 USD a zlato posiluje o 0,9 % na 4 416,93 USD za unci.

Z jednotlivých titulů poutají největší pozornost akcie navázané na AI infrastrukturu. Intel (INTC +0,71 %) a Micron (MU +5,02 %) rostou spolu s širším polovodičovým sektorem poté, co Anthropic podle dokumentů pro investory vykázal meziroční růst tržeb za druhý kvartál nejméně čtrnáctinásobně, na více než 11,5 mld. USD, a zároveň dosáhl kladného upraveného provozního zisku. Nvidia (NVDA +0,28 %) je v centru pozornosti po zprávě, že se zavázala investovat až 105 mld. USD do podpory nového datacentrového kampusu v Ohiu, který má využívat OpenAI. Berkshire Hathaway (BRK.B -0,81 %) zvýšila podíly v Delta Air Lines (DAL -1,19 %) a Alphabetu (GOOGL -0,86 %), což ukazuje, že Greg Abel začíná využívat velkou hotovostní pozici konglomerátu. Nike (NKE -4,43 %) oslabuje po komentáři UBS, podle něhož očekávané zlepšení značkové dynamiky stále nepřichází. Raytheon Technologies (RTX +0,28 %) naopak zaujala kontraktem amerického námořnictva v hodnotě 22,9 mld. USD na urychlení výroby střel Tomahawk v době, kdy válka s Íránem zvyšuje tlak na doplňování zbrojních zásob.

Index Dow Jones -0,61 % na 53406,78 b.
S&P 500 -0,41 % na 7753,47 b.
Nasdaq Composite -0,29 % na 26652,8 b.

Index S&P 500 -0,41 % na 7753,47 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +0,8 % Komunikační služby -1,7 % Průmysl +0,3 % Nezbytná spotřeba -1,4 % Informační technologie +0 % Zbytná spotřeba -1,3 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Coherent Corp (COHR) +10 % Align Technology (ALGN) -5,8 % Sandisk Corp (SNDK) +9,2 % Charter Communications (CHTR) -5,7 % Lumentum Holdings (LITE) +6,3 % Constellation Brands (STZ) -5,6 % Marvell Technology (MRVL) +6,2 % Trade Desk (TTD) -5,5 % Ciena Corp (CIEN) +5,8 % Carvana (CVNA) -5,0 %
Martin Varecha
Fio banka, a.s.
Prohlášení

Listen to the audio version of this article (generated by AI).

Lumentum (LITE) just gave investors exactly what they want from a long-term winner: another reason to keep holding.

The optical-networking company just reported roughly $1.01 billion in quarterly revenue, more than double what it generated a year ago. Adjusted earnings jumped to $3.23 per share, and management guided the current quarter to between $1.225 billion and $1.275 billion in revenue. Wall Street had expected less on both counts.

The underlying AI thesis is working.

Data centers are growing larger. AI clusters are connecting more chips. More data has to move between those chips at greater speeds. And copper wiring can only carry that traffic so far before power consumption and physical constraints become a problem.

That is where Lumentum comes in.

Its lasers and optical components help move data through AI infrastructure using light. As the buildout scales, that technology becomes more essential.

Nvidia (NVDA) clearly agrees. In March, it invested $2 billion in Lumentum and made a multibillion-dollar purchase commitment for advanced laser components. Lumentum is also expanding U.S. manufacturing to support the next generation of AI data centers.

Last August, I recommended Lumentum in the AI Revolution Portfolio, where Louis Navellier, Eric Fry, and I bring together our highest-conviction AI ideas.

That position is now up roughly 680%.

The business continues to execute, AI optics demand keeps strengthening, and the original investment case remains firmly intact. 

But Lumentum’s success points to a larger lesson.

A stock can keep getting better while the account around it becomes more dependent on it.

That is the hidden cost of winning in AI.

Why Lumentum Stock Became an AI Optical Networking Winner
Lumentum was hardly an obvious AI winner when we recommended it.

The stock did not have Nvidia’s brand recognition. It did not own a hyperscale cloud platform. And it was not building a frontier AI model.

But AI data centers were running into a problem.

The chips were getting faster, and the compute clusters were getting larger. Yet all those processors still had to communicate with one another.

That made networking increasingly important.

An AI cluster can contain thousands of high-end chips working on the same model. If data cannot move freely, and at speed, between those chips, it wastes expensive computing resources. More chips alone do not solve that problem. What must improve is the connections between them.

Lumentum fits that bill to a tee.

That was the opportunity we saw way back in August 2025. Since then, each earnings report has made the connection harder to ignore.

The market eventually caught on that optics had become a critical piece of AI infrastructure, and Lumentum’s stock surged.

The company earned it. Now consider what a return like that can do to a portfolio…

How a 680% Winner Changes Portfolio Concentration
Suppose Lumentum started as 5% of a portfolio. After a 680% gain, with every other holding unchanged, it would now account for roughly 29% of the entire portfolio.

A position that started at 3% would now account for more than 19%.

The investor did nothing wrong. In fact, they were spectacularly right.

But the portfolio has changed.

A measured position now drives nearly a third of the account. One earnings report, customer delay, supply-chain problem, or change in AI infrastructure spending can now have an outsized impact.

None of this makes Lumentum a sell. We still like the business very much.

But “hold” should never mean “stop thinking.”

After a major run, investors need to reassess the stock’s role in the broader account: how much performance now depends on it, which other holdings share its risks, and whether the overall mix still reflects the original plan. 

Position size is part of the investment thesis, not an administrative detail worked in after the fact.

Once a winner controls a substantial share of an account, the next dollar should not automatically follow the last one.

New capital may do more by strengthening another part of the portfolio. That allows investors to build around the winner without abandoning the thesis that produced it.

“We like this stock” tells an investor what looks attractive – but not how much to own, whether to keep adding, or where the next dollar belongs.

Stock selection finds the opportunity. Allocation determines the role it plays.

Every New AI Stock Competes for the Same Portfolio Dollar
The AI market keeps producing fresh opportunities, but capital is finite. Every new position has to earn its place beside the winners already in a portfolio and the risks already being carried.

As valuations shift, new opportunities emerge, and modest positions grow into major ones, the ideal mix changes, too.

That broader evolution led Louis Navellier, Eric Fry, and me to revisit our AI Revolution Portfolio.

After combing through more than 200 AI recommendations, Louis, Eric, and I narrowed the field to roughly 20 stocks we believe deserve capital now.

We also assigned a recommended allocation to every holding. Subscribers will see which companies made the cut, how we believe the holdings should fit together, and how much of the portfolio we think each idea deserves.

The AI boom is still creating exceptional opportunities.

Lumentum shows the power of one great pick. Building a complete strategy takes another layer of work: deciding which opportunities belong together and how much capital each one deserves.

That is what Louis, Eric, and I – together, with all our decades of combined experience – have built.

On Wednesday, August 19, we’re unveiling the rebuilt AI Revolution Portfolio.

Sign up now to see it as soon as it goes live.

Lumentum Holdings Inc. ("Lumentum") today announced that company management is currently scheduled participate in the following investor events:Event:Rosenblatt

Lumentum Holdings Inc. guided the September quarter to a $4.20 EPS midpoint, and I had to read it twice. That's 2.04x what the company earned across all of fiscal 2025. Hold the September revenue guide flat for four quarters and credit zero growth ever again. Fiscal 2027 still comes to $5.0 billion, up 66% on the year just closed. The growth is coming from chips (not finished boxes). Components added $329.0 million of the $525.6 million that the June quarter gained YOY, against Systems' $196.6 million.

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© departmentofenergy / Flickr

Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and Lumentum (NASDAQ:LITE) both just posted earnings that show optics moving to the center of the AI buildout. Broadcom reported Q2 FY2026 on June 3, 2026. Lumentum followed with Q4 FY2026 on August 11, 2026. Same tailwind, very different business shapes.

AI Silicon Scale Meets Pure-Play Photonics Broadcom keeps compounding at giant size. Semiconductor Solutions hit $15.009 billion, up 79% YoY, and AI semi revenue reached $10.80 billion, up 143% YoY. VMware added another $7.178 billion, giving Hock Tan a software annuity to lean on. Free cash flow ran at 46% of revenue. That is unusual for a company this large.

Lumentum is smaller but running hotter. Revenue crossed $1.006 billion, up 109.3% YoY, with Systems up 122.6% and Components up 102.7%. Non-GAAP operating margin jumped 2,160 basis points to 36.6%. CEO Michael Hurlston said the company is “reaching our target model more than a quarter ahead of schedule.” That is a real acceleration on a clean base.

Two Ways to Own the Optical Bottleneck Heat, power, and copper reach are choking rack-to-rack bandwidth, and both companies address that with light. Broadcom sells custom AI ASICs plus Ethernet AI switches; Tan guided Q3 AI semi revenue to $16.0 billion, growing over 200% YoY, and holds a public goal of exceeding $100 billion in AI sales by 2027. Lumentum sits one layer deeper in the stack, supplying InP lasers and optical switching that Broadcom-class systems depend on.

Lens Broadcom Lumentum Core Bet Custom ASICs plus Ethernet AI switching OCS, CPO lasers, 1.6T cloud modules Scale Market cap ~$1.98T Market cap ~$72.5B Key Vulnerability Hyperscaler concentration, heavy debt ASP swings, capacity ramp risk Polymarket traders assign a 74% probability that Broadcom clears its own $16 billion Q3 AI revenue bar. Confidence in the setup is high.

The Next Test Is Ramp Discipline I will watch whether Broadcom’s Q3 print lands closer to ~$29.4 billion in total revenue without VMware growth stalling. For Lumentum, the ramp on OCS (backlog above $400 million) and the multi-hundred-million-dollar CPO order slated for 1H CY2027 is what matters. A slip in either would sting after a 679.27% one-year run.

Why I’d Split the Ticket by Investor Profile If I wanted platform control and steadier compounding, I’d lean toward Broadcom. The mix of custom silicon, Ethernet switching, VMware cash flow, and a $0.65 quarterly dividend gives it defense inside an AI cycle. If I wanted concentrated exposure to the physical bottleneck holding back AI clusters, Lumentum is the cleaner expression. Shares now trade at $932.47, so I’d size any new position with respect for how much good news is already in the price.

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