SAN JOSE, Calif., March 10, 2026, 06:51 PDT.
Lumentum Holdings is set to join the S&P 500 before the bell on March 23, days after S&P Dow Jones Indices added the optical networking supplier as part of its quarterly rebalance. Having advanced from the S&P MidCap 400, Lumentum’s CEO Michael Hurlston called the move a recognition of the company’s “vital role in helping customers build next-generation AI infrastructure.” Business Wire
The S&P 500’s influence runs deep—trillions in index and ETF assets track its every move. When a stock joins the index, there’s usually a surge in demand and liquidity, as passive funds overhaul their holdings. Stephens analyst Melissa Roberts flagged last month that getting added can shake up trading patterns, thanks to those passive flows, not to mention effects on float and sizing.
Just days after Nvidia’s announcement of a $2 billion investment in Lumentum—plus hefty, multibillion-dollar purchase orders for advanced laser parts—momentum is building. Those components operate in the optics layer, moving data as light instead of electric signals through sprawling AI setups. Nvidia CEO Jensen Huang didn’t hold back, describing it as the “largest computing infrastructure buildout in history.” NVIDIA Newsroom
Lumentum’s March 2 filing spelled out the specifics: Nvidia paid $2 billion in cash for 2,876,415 shares of convertible preferred stock, priced at $695.31 apiece. The document notes those shares will convert to common stock on a one-for-one basis, but only after the U.S. antitrust waiting period ends.
Lumentum’s numbers have drawn plenty of attention. Second-quarter revenue landed at $665.5 million, a jump of 65.5% year over year, with the company forecasting $780 million to $830 million in sales for the ongoing quarter. Back in February, Hurlston described Lumentum as being at the “starting line” for optical circuit switches—these direct data center traffic using light—and for co-packaged optics that put optical links right up against processors. Lumentum Investor Relations
Coherent, a photonics supplier that benefits from Nvidia’s AI push, is set to join the S&P 500 on March 23, along with Vertiv and EchoStar. Following the index shuffle, all four stocks saw gains Monday as investors reacted to the news.
For some on Wall Street, the story stretches beyond a single player. Bank of America’s Tal Liani last week called AI a driver of an optical transport “supercycle.” Over at MarketWatch, Stephens analyst Melissa Roberts said Lumentum and Coherent now look “vastly oversized” for the S&P MidCap 400. MarketWatch
But risks remain. Lumentum flagged that its guidance hinges on ramping up manufacturing and hitting production, quality, and delivery goals. It also cited threats from volatile demand, possible order cancellations or delays, tighter pricing, trade barriers, and geopolitical shocks. The Nvidia stake is still locked behind an antitrust waiting period before it can be converted to common shares.
Lumentum, headquartered in San Jose, makes optical and photonic gear for both cloud infrastructure and communications networks, not to mention its industrial laser products. These days, the company’s operations have landed right in the thick of the race to expand AI infrastructure—an area grabbing plenty of market attention.
