On August 27, Lumentum rose 3.07% overnight, trading at $967.78/share, with turnover of $35.47 million.

On the news front, NVIDIA reported second fiscal quarter results after the close on August 26, with revenue surging 106% year-over-year and all key metrics exceeding market expectations. The robust AI chip demand reaffirmed sustained data center capital expenditure expansion, driving broad strength across the optical communications sector. Peers Coherent gained 3.32%, Applied Optoelectronics rose 4.61%, and Ciena advanced 2.02%.

Additionally, Iran and Oman issued a joint statement proposing to establish a secure maritime corridor in the Strait of Hormuz. The easing of geopolitical tensions pushed U.S. Treasury yields lower, alleviating the discount rate headwind that had previously weighed on high-duration assets such as optical communications stocks. Lumentum's fundamentals remain solid following its August 11 earnings report, which showed revenue up 109% year-over-year to $1.03 billion, with next-quarter guidance midpoint well above consensus. Citi maintained a $1,200 price target while BNP Paribas raised its target to $1,380.

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