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- Lumentum Jumps On Marvell Buyout Report
- Marvell Wants Lumentum. Here’s Why Coherent Could Win.
Bloomberg reported on October 28 that Marvell is in advanced discussions to acquire Lumentum, though no definitive agreement has been announced. Lumentum shares rose sharply on the news while Marvell fell in after-hours trading, and Coherent gained about 3.5% after hours. Per Bloomberg’s October 9 report, Lumentum’s optical capacity is effectively sold out through early 2029, and CEO Michael Hurlston said the company could not meet about 70% of expected demand for certain products through 2027. The article argues that a Marvell–Lumentum deal could make Coherent’s independent manufacturing more valuable, especially since Nvidia has invested $2 billion in Coherent.
- Why Lumentum's stock led the S&P 500 higher on Monday
- Why Lumentum Holdings Stock Soared 8.2% Today
Lumentum (LITE) shares rose 8.2% from the October 23 close, after falling 8.3% last week, as a financial services firm initiated coverage with a buy rating. StoneX set a $1,200 price target, citing management's acknowledgment that its AI-related optoelectronic capacity is effectively committed into early 2029. Based on the October 23 close of $756.17, that target implies 59% upside. Jefferies had also raised its price target to $1,250 from $1,200 on October 20. The article notes the stock trades at 54.1 times operating cash flow, versus a five-year average of 15.4, and suggests investors take a more cautious approach while watching whether the company meets its first-quarter 2027 guidance of $1.23 billion to $1.28 billion in revenue and $4.05 to $4.35 in adjusted diluted EPS.
- Lumentum Jumps 8% as StoneX Starts Coverage With $1,200 Target; Applied Optoelectronics and Coherent Climb 6%
Lumentum shares rose 8% to $819.98 in afternoon trading after StoneX started coverage with a Buy rating and a $1,200 price target. Applied Optoelectronics and Coherent each climbed 6%, while the Roundhill Photonics & Optics ETF (LYTE) rose 4% to $18.96 and the SPDR S&P 500 ETF Trust (SPY) gained 0.7% to $765.32. Optics stocks had slid steeply over the past month amid questions about how customers will fund large AI infrastructure projects, which weighed on the timing of optical component orders. Lumentum makes lasers and optical components for data center and telecom networks, Coherent is spending heavily to expand capacity, and Applied Optoelectronics depends on a small number of large customers. The article says the next test is whether AI customers turn their expansion plans into firm optical orders.
- Optics Stocks Rally Ahead of Earnings: Applied Optoelectronics Jumps 5%, Lumentum Adds 4%, Coherent Rises 2%
Optics stocks rose on Monday in anticipation of early-November earnings, with Applied Optoelectronics (AAOI) up 5% to $79.01, Lumentum (LITE) up 4% to $856.18, Coherent (COHR) up 2% to $236.93, and the Roundhill Photonics & Optics ETF (LYTE) up 2% to $20.20. Lumentum's CEO Michael Hurlston said its components are sold out through 2029 and that the company cannot meet roughly 70% of demand for some products through 2027 and 30% for others through 2028. Coherent launched its PhotonLink integrated optics platform, already has more than 10 customer engagements, and expects initial PhotonLink revenue to ramp in the December quarter; one analyst reiterated a Buy rating with a $395 price target. The article notes valuations remain elevated versus historical averages, and Coherent reports on November 4 while Applied Optoelectronics and Lumentum report on November 5.
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