Overview
- Lumentum announced Thursday a 240,000-square-foot Greensboro, North Carolina facility to make indium phosphide lasers for AI networking, with Nvidia named as a customer and production aimed for a mid-2028 ramp.
- Shares fell 11.37% to $688.80 during Thursday’s session, then rose 1.50% after hours to $699.10, following a record intraday high of $808.80 earlier in the week.
- S&P 500 inclusion on March 23 drew steady buying from index funds and ETFs, which helped power a sharp one-year move in the stock.
- Recent results showed fast growth, with Q2 revenue up 65.5% to $665.5 million, EPS topping estimates, and guidance implying more than 85% year-over-year growth next quarter as demand builds for optical circuit switches and co-packaged optics.
- Risks are rising with a very high valuation and insider selling, while analyst targets now span from about $560 to $1,040 and institutional ownership sits near 94%, setting a high bar for flawless execution of the new capacity.