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Lumentum Soars On Nasdaq-100 Entry And Fresh Analyst Upgrades

The move forces buying by funds that mirror the index.

Overview

  • Lumentum shares jumped to new records Monday, rising as high as about $1,073 and closing near $1,053 after the Nasdaq confirmed Friday that the company will be added to the Nasdaq-100.
  • The change takes effect before the open on May 18 and will replace CoStar Group, which means index-tracking funds must buy Lumentum shares to match the benchmark.
  • Analysts raised targets across the board, led by Citic to $1,186 with Rosenblatt at $1,300 and others near $1,000, and institutional ownership is reported around 94%.
  • Recent results added fuel, with fiscal Q3 EPS of $2.37 beating estimates and revenue of $808.4 million up 90% year over year as management touted optical gear used to speed AI data centers, including co‑packaged optics and 200G lasers.
  • Company and media reports say demand is outpacing supply into 2027–2028, and Lumentum is adding capacity through a newly acquired Greensboro facility and potential Tokyo-area investment to ramp production.