Lumentum Holdings is rated Sell with a fair value estimate of $400 per share, significantly below its recent closing price of $840.70. While the company's laser business benefits from a strong competitive moat and growing demand in AI networking infrastructure, current supply shortages and high profit margins are expected to ease as production capacity expands. Additionally, NVIDIA's $2 billion investment and growth in optical communication systems offer potential upside, but customer bargaining power and the need for ongoing reinvestment limit sustainable free cash flow. A possible acquisition of Marvell adds short-term uncertainty, but the standalone valuation remains stretched. The analyst suggests considering a buy if the stock price drops to around $325-$350 and fundamentals improve.
Lumentum's stock price on Pluang is currently $840.70, down 8.57% in one day, with all recent orders being sells. The stock trades near its 52-week high of $1.13K, showing strong market interest despite the sell rating. These figures are as of Nov 01, 2026 23:51 WIB.
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