Lumentum Holdings Inc. (LITE) experienced a significant 24-hour decline of 5.00% during the overnight session on Monday, underperforming the broader market.

The sharp drop was primarily driven by renewed concerns over delays in co-packaged optics (CPO) mass production. An independent research report from SemiAnalysis indicated that CPO timelines could be pushed back to 2028 or even 2029, citing system-level yields of only approximately 19%, which is far below production-ready standards. This assessment continued to suppress investor sentiment across the optical communications sector.

Adding to the downward pressure was broad weakness within the Communication Equipment sector, where several major peers also traded lower, intensifying the negative linkage effect on individual stocks like Lumentum.