Lumentum (LITE) Stock Swings 11% Down Then Recovers on NVIDIA-Backed Facility

TLDR

• LITE fell 11.37% during Thursday’s session to close at $688.80, before recovering 1.50% to $699.10 in after-hours trading.
• Lumentum announced a 240,000 sq ft manufacturing facility in Greensboro, NC, acquired from Qorvo, targeting mid-2028 production ramp.
• NVIDIA confirmed as a customer under previously announced strategic agreements tied to the new facility.
• Last quarter, Lumentum beat EPS expectations ($1.67 vs. $1.41 estimate) with revenue up 65.5% year-over-year to $665.5M.
• Analyst targets range widely — BNP Paribas has a $1,040 price target while the consensus sits at $575.06; insiders sold ~$38.9M in stock over the past 90 days.

Lumentum Holdings (LITE) pulled back sharply on Thursday, dropping 11.37% to close at $688.80. The move came on volume of roughly 6.18 million — about 4% above its average daily volume.

Lumentum Holdings Inc., LITE

Despite the session’s decline, the stock bounced back in after-hours trading. It rose 1.50% to $699.10 following news of a major U.S. manufacturing expansion.

The company announced the acquisition of a 240,000-square-foot facility in Greensboro, North Carolina, from semiconductor firm Qorvo. The site will produce indium phosphide-based optical devices, including continuous wave and ultra-high-power lasers using 6-inch InP wafers.

NVIDIA was confirmed as a customer under previously announced strategic agreements tied to the new facility. Debora Shoquist, EVP of Operations at NVIDIA, said the expansion “strengthens supply continuity and positions us to meet growing infrastructure demands with confidence.”

The after-hours bounce suggests the market viewed the dip as a buying opportunity rather than a fundamental change in direction.

Strong Earnings, Raised Guidance

Lumentum’s most recent quarterly results gave investors plenty to be optimistic about. The company posted EPS of $1.67, beating the consensus estimate of $1.41 by $0.26.

Revenue came in at $665.5 million — up 65.5% year-over-year and ahead of the $646.74 million estimate. The company set Q3 2026 EPS guidance at $2.15–$2.35.

Despite that, the stock has now pulled back from its 52-week high of $808.80. It remains 84% above its 52-week low of $45.66, and has surged approximately 941.90% over the past 12 months.

The stock still trades well above both its 50-day moving average of $567.66 and its 200-day moving average of $363.11 — both well below the current price.

Analyst Views Split

Analyst opinion is far from uniform. BNP Paribas has a $1,040 price target on the stock, implying around 47% upside from current levels.

Morgan Stanley maintained an Equal-Weight rating and raised its price target from $520 to $595. Mizuho has an “outperform” rating with a $645 target.

The consensus across 19 analysts stands at “Moderate Buy” with an average price target of $575.06 — currently below where the stock trades.

On the insider front, executives sold roughly 65,775 shares worth approximately $38.9 million over the past 90 days. Institutional ownership stands at about 94%.

LITE’s RSI was at 52.34 heading into Friday, with the stock’s market cap sitting at approximately $49.18 billion.

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