Coherent, Lumentum, and Applied Optoelectronics rally as hyperscalers boost spending on optical networking infrastructure.
Coherent, Lumentum, and Applied Optoelectronics shares jumped midday Tuesday, led by Coherent’s 16% gain to $422 and Lumentum’s 13% climb above $1,000. Applied Optoelectronics rose 8% to $201 after its Q1 datacenter revenue more than doubled on 800G transceiver demand.
The optics sector is repricing higher as hyperscaler AI capital expenditures flow into optical networking infrastructure. Coherent, previously a laggard, emerged as the leader in the latest rally, while Lumentum crossed the $1,000 mark for the first time.
The broader optics complex, including all three stocks, is extending gains after weeks of volatility, reflecting renewed investor confidence in AI-driven demand.