Index inclusion forces passive funds to buy LITE shares, driving a 16% jump after Nasdaq announced the change for May 18, 2026.
Lumentum Holdings (LITE) will replace CoStar Group (CSGP) in the Nasdaq 100 Index effective May 18, 2026, triggering a 16% surge in its stock to $1,053.09 by Monday’s close. The move reflects forced buying from passive funds tracking the index, which must now include LITE shares.
The Nasdaq 100 includes the 100 largest non-financial companies on Nasdaq, and inclusion often drives mechanical demand. LITE’s year-to-date return stands at 185.71%, far outpacing the S&P 500’s 8.29%. Over one year, its return is 1,523.39%, compared to the S&P 500’s 30.97%.
CEO Michael Hurlston highlighted margin expansion as a key driver of recent performance, a factor Wall Street and the index committee noted. The stock’s rally follows record quarterly revenue and strong growth metrics.