Lumentum Drops About 5% After Blistering AI-Optics Rally

Overview

• Lumentum shares fell roughly 5% as traders took profits after a rapid run-up.
• The stock jumped 90.7% in the first quarter of 2026, ranking as the S&P 500’s second-best performer after a near-quadruple in 2024.
• Buying momentum drew support from its March 23 entry into the S&P 500 and a $2 billion NVIDIA investment structured as Series A convertible preferred stock tied to AI data center optics.
• Selling pressure built near technical resistance around the $808 record high, and the stock has a track record of weak April returns.
• Despite the decline, the shares remain up about 124% year to date and trade on heavy volume that lets big investors trim positions without major disruption.