AI Data Center Surge: Optical Equipment Stocks Shock Again

Lumentum Holdings Inc. (NASDAQ: LITE), a leading provider of optical communications and photonics solutions, reported fiscal 2025 second-quarter revenue of $665.5 million and non-GAAP diluted EPS of $1.67, achieving year-over-year growth in the 60 percent range and improved profitability. Driven by strong demand for optical circuit switches and co-packaged optics, the company’s related order backlog exceeded $400 million, and it is guiding fiscal 2026 third-quarter revenue of $780 million to $830 million.

Separately, on February 6, board member Penny Hersher sold approximately KRW 3.5 billion (about $2.6 million) of common stock to monetize part of her holdings, and on February 7 the company processed a share transaction to cover tax withholdings related to CEO Michael Hurlston’s RSU vesting.

Immediately following the earnings release, Lumentum’s share price jumped by double digits on expectations of expanding optical-component demand for AI and cloud data centers. Wall Street analysts project that the company will continue to deliver record revenue and profit growth in upcoming quarters. At the upcoming OFC 2026 investor briefing and major trade shows, Lumentum will actively showcase its next-generation optical circuit switches and laser platforms to accelerate its penetration of the AI infrastructure market.

Headquartered in San Jose, California, Lumentum supplies optical components and modules for telecom networks, data centers, industrial lasers and 3D sensing, with major customers that include Apple, Nvidia and Google. As AI and cloud adoption drive surging demand for ultra-high-speed optical transmission equipment and lasers, Lumentum is competing with Coherent, Broadcom and others for market share in next-generation data-center optical solutions.