Nvidia-Backed Lumentum Reports Earnings Tuesday. Here’s How Much the Stock Could Move

Nvidia-Backed Lumentum Reports Earnings Tuesday. Here’s How Much the Stock Could Move

Fri, August 7, 2026 at 9:16 PM GMT+3 2 min read

• LITE +6.22%
• NVDA +2.27%

Key Takeaways

• Lumentum is due to report earnings Tuesday afternoon, with the stock seen swinging up to 13% by the end of the week following the results.

• The optics and laser maker is expected to report a big jump in sales and profits driven by AI demand.

Lumentum is set to report earnings Tuesday afternoon, with traders anticipating a big swing in the optical and photonic products maker's stock.

Based on recent options pricing, Lumentum (LITE) shares are seen swinging up to 13% in either direction by the end of the week following the results. A move of that size from Friday afternoon's level around $892 could see the stock rally as high as $1,000, or slide as low as $778, giving up some of its gains this year.

Though off their May highs, Lumentum shares are up more than 140% since the start of the year after a string of positive developments, including an investment from Nvidia (NVDA) and bullish comments from analysts and executives about AI-driven demand.

Why This Matters to Investors

Lumentum, which makes optical components used in data centers, is widely viewed as "pick-and-shovel" AI play, and has seen sales surge as big tech companies invest in building out their AI capacity.

Morgan Stanley analysts recently said in a note that they view Lumentum, along with Corning (GLW) and Coherent (COHR), as the "clearest beneficiaries" of tech companies shifting to using optical connectors rather than traditional wiring to connect hardware in data centers.

Analysts are expecting Lumentum to report revenue of $989.91 million, just over double what it reported in the same quarter a year ago. Adjusted earnings per share are projected to have more than tripled year-over-year to $2.98, per Visible Alpha estimates.

Analysts are largely bullish on Lumentum stock, with the nine analysts tracked by Visible Alpha split between seven "buy" and two neutral ratings. Their mean price target just shy of $1,110 would suggest roughly 25% upside from Friday's level.

Read the original article on Investopedia