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Lumentum: The Tiny AI Stock Behind Nvidia’s Next Big Boom!

Lumentum Holdings has suddenly become one of the most talked-about names in the AI infrastructure trade. Its shares surged about 17% to a record close of $1,053.09 after news that the company would join the Nasdaq 100 on May 18, replacing CoStar. The move reignited a rally that had briefly paused after mixed fiscal third-quarter earnings, where profit beat expectations but revenue growth still failed to fully satisfy Wall Street’s elevated hopes. The stock is now up sharply in 2026 and has multiplied over the past year, helped by investor enthusiasm around AI data centers, optical networking, and Nvidia’s backing. The key story is simple: AI chips may get the headlines, but those chips need high-speed optical links to move data across servers, racks, and data centers. Lumentum sits directly inside that less visible but increasingly critical layer of the AI buildout.