On September 11, Lumentum rose 3.47% in regular trading, trading at $961.298/share, with turnover of $269 million. The stock rebounded after a 3.52% decline on September 10 driven by broad market weakness and profit-taking following a sharp rally earlier in the week.

On the news front, the optical communications sector staged a collective rebound. Goldman Sachs recently raised its global optical module shipment forecast significantly, citing AI compute architecture upgrades as a key driver of surging demand for 1.6T and 3.2T high-speed optical modules, with 800G and above becoming the primary growth segment. The market for high-end optical modules is projected to climb from $45.2 billion to $129.5 billion between the next two to four years. Deutsche Bank initiated coverage on Lumentum with a Buy rating and a $1,200 price target, while Evercore ISI launched coverage with an Outperform rating and an $1,100 target. Analysts note that Lumentum's order backlog now exceeds two years, with optical chip deliveries remaining in persistent shortage.

Sector peers also advanced, with Applied Optoelectronics up 4.79%, Ciena up 2.73%, and Nokia up 2.64%, reflecting a broad recovery in sentiment across the optical communications space.

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