Lumentum (LITE) Stock Drops 11%, Recovers on Announcement of NVIDIA-Backed Facility

TLDR

• During Thursday’s regular trading session, LITE dropped 11.37% to close at $688.80, before rebounding 1.50% to $699.10 in after-hours trading.
• Lumentum announced it has acquired a 240,000 sq ft manufacturing facility in Greensboro, NC from Qorvo, with production on track to ramp up by mid-2028.
• NVIDIA has been confirmed as a customer under previously announced strategic agreements linked to the new facility.
• In its most recent quarter, Lumentum outperformed EPS expectations, posting $1.67 versus the $1.41 analyst estimate, with revenue rising 65.5% year-over-year to $665.5 million.
• Analyst price targets vary widely: BNP Paribas holds a $1,040 price target while the average consensus target sits at $575.06; insiders sold roughly $38.9 million worth of stock over the past 90 days.

(SeaPRwire) –   Lumentum Holdings (LITE) saw a sharp pullback on Thursday, falling 11.37% to close regular trading at $688.80. The move was recorded on volume of roughly 6.18 million shares, around 4% above the stock’s average daily trading volume.

Lumentum Holdings Inc., ticker LITE

Despite the decline during regular trading, the stock bounced back in after-hours trading. It gained 1.50% to reach $699.10 following news of a major U.S.-based manufacturing expansion from the company.

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

Production is targeted to ramp up by mid-2028. CEO Michael Hurlston said customers are “building the infrastructure that will define the next era of computing.”

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 rebound indicates the market saw the earlier dip as a buying opportunity, rather than a fundamental change in the stock’s trajectory.

Strong Earnings, Raised Guidance

Lumentum’s most recent quarterly results gave investors plenty of reason for optimism. 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 above the analyst estimate of $646.74 million. The company set its Q3 2026 EPS guidance between $2.15 and $2.35.

Even with strong results, the stock has pulled back from its 52-week high of $808.80. It still trades 84% above its 52-week low of $45.66, and has surged roughly 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 of which are well below LITE’s current price.

Analyst Views Split

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

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

The consensus rating across 19 covering analysts is “Moderate Buy” with an average price target of $575.06, which is currently below the stock’s trading price.

On the insider trading front, company executives sold roughly 65,775 shares worth around $38.9 million over the past 90 days. Institutional ownership of the stock stands at roughly 94%.

Heading into Friday, LITE’s RSI sat at 52.34, with the stock’s total market capitalization coming in at approximately $49.18 billion.