Lumentum Holdings Inc. (LITE) saw its stock price plummet by 5.97% during Tuesday's intraday trading session.

The sharp decline followed comments from Nvidia CEO Jensen Huang at the company's GTC conference, where he indicated Nvidia's next-generation platforms would scale up using both copper and co-packaged optics rather than making a full transition to optical fiber. This tempered investor expectations for a near-term boom in optical networking components, which had previously driven significant gains for companies like Lumentum. Analysts noted that market enthusiasm for co-packaged optics adoption may have gotten ahead of supply chain readiness and near-term commercial reality.

The movement reflects a market reassessment of the growth trajectory for optical component suppliers, with investors adjusting their positions based on Nvidia's clarified technology roadmap which maintains a significant role for copper interconnects alongside optical solutions.