On July 2, Lumentum Holdings fell 3.27% in regular trading, trading at $774.5/share, with turnover of $579 million. The decline came amid continued selling pressure across the optical communication sector driven by growing concerns over co-packaged optics (CPO) technology commercialization timelines.

An independent research institution recently published a report indicating that CPO mass production may be delayed to 2028 or even 2029, with system-level yield at only approximately 19% — far below the threshold required for volume manufacturing. This fundamental concern has continued to suppress sentiment across the optical communication sector, prompting investors to reassess the near-term revenue contribution of next-generation optical interconnect technologies.

Within the Communication Equipment sector, the broader group declined in tandem. Applied Optoelectronics fell 4.59%, Ciena dropped 4.21%, Nokia declined 1.94%, Cisco fell 1.8%, and Arista Networks slipped 0.7%, reflecting persistent sector-wide linkage pressure that amplified the pullback in individual names including Lumentum.

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