- Is Ciena Corp (CIEN) Overvalued After 5.3% Rally? GF Value Says Overvalued
May 12, 2026 · gurufocus.com
On May 12, 2026, Ciena Corp (CIEN) shares rose 5.3%, bringing the current price to $577.15. The stock has experienced significant volatility over the past year,
- Corning Surges 137.4% Year to Date: How to Play the Stock
May 12, 2026
Corning Incorporated GLW shares have surged 137.4% year to date compared with the communications components industry’s growth of 119.4%. The stock has outperformed the S&P 500 Index's decline during this period.Zacks Investment Research
Image Source: Zacks Investment Research
The stock has underperformed its competitor, Ciena Corporation CIEN, but outperformed Amphenol Corporation APH. Ciena has surged 149.7%, while Amphenol has lost 9.3%.
GLW Rides on Healthy Traction in the AI Infrastructure Vertical
Corning is positioning itself as a critical supplier to the AI ecosystem. An AI data center requires massive GPU clusters, high-speed optical interconnects, robust fiber networking infrastructure and advanced photonic solutions. Hyperscalers are rapidly expanding AI data centers, and this is directly boosting demand for Corning’s leading edge optical fiber and connectivity products.
NVIDIA and Corning have expanded their long-term partnership agreement. Per the agreement, GLW will expand its U.S. optical connectivity manufacturing capacity by 10x and fiber production capacity by more than 50%. More is set to build three new manufacturing facilities in North Carolina and Texas. As AI factory buildouts accelerate across the country, the new facilities will allow Corning to boost its commercial prospects significantly.
Management has also emphasized that it is aiming for a $10 billion photonics revenue stream by 2030. Data transfer bottlenecks are becoming a limiting factor. Photonics is the use of light instead of electricity for transmitting data. The company’s strategy of directing research and innovation in such areas will likely bring long-term benefits.
In 2023, Corning launched a multiyear growth framework called Springboard to expedite revenue growth across its “Market-Access Platforms.” Under this framework, the company initially targeted a $20 billion annualized revenue run rate by the end of 2026. It has been outperforming its earlier expectations and now plans a $30 billion annualized run rate by 2028 under its upgraded internal plan. Corning has set a new long-term target of $40 billion in annualized revenue by 2030, with a high-confidence plan targeting $35 billion.
Key Challenges
Corning’s aggressive long-term growth strategy is highly dependent on growing AI infrastructure spending. Growing geopolitical unrest, supply chain issues and macro uncertainty can impact hyperscalers’ AI spending and weaken Corning’s outlook. Moreover, the company is facing increasing competition in Optical networking and photonics from other major players such as Ciena, Amphenol and Coherent.
A significant portion of Corning’s business remains tied to cyclical consumer electronics and automotive markets. Demand for display glass, premium smartphone materials and automotive products can fluctuate with consumer spending trends, memory pricing and vehicle production levels.
The Display and consumer electronics businesses remain dependent on Chinese panel makers and manufacturing ecosystems. Escalating trade restrictions, tariff increases or supply-chain disruptions between the United States and China could adversely affect operating margins.
Management expects higher memory prices to affect the broader smartphone market in 2026. In Automotive, the company continues to face weaker heavy-duty demand in North America, while global vehicle production trends remain uneven.
Story Continues
Estimate Revision Trend
Earnings estimates for Corning’s 2026 and 2027 have increased over the past 60 days.Zacks Investment Research
Image Source: Zacks Investment Research
Key Valuation Metric of GLW
From a valuation standpoint, GLW is currently trading at a premiumcompared with the industry. Going by the price/earnings ratio, the company’s shares currently trade at 59.05 forward 12-month earnings, higher than 55.7 for the industry.Zacks Investment Research
Image Source: Zacks Investment Research
End Note
Corning is benefiting from healthy traction in the Optical Communication segment, backed by growing demand in the AI data center vertical. Increased focus on new emerging high-growth verticals, such as photonics, is a positive factor. The expansion of domestic manufacturing capacities boosts reliability among hyperscaler customers.
However, growing competition in the optical communication segment, cyclicality in the consumer electronics market and weakness in the automotive segment remain headwinds. With a Zacks Rank #3 (Hold), Corning appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks Investment Research
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- CORRECTION - Leverage Shares by Themes Targets Market Movers Across Tech and Industrials with Nine New 2X Single-Stock ETFs
May 12, 2026
Themes ETF Trust
GREENWICH, Conn., May 12, 2026 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Themes ETF Trust, please note the management fee in the second paragraph is now 0.75% rather than 0.35% as originally issued. The corrected release follows:
Leverage Shares by Themes is pleased to announce the launch of nine new 2X single-stock leveraged ETFs, available for trading beginning May 12, 2026. Built for active traders seeking dynamic ways to engage with potentially high-growth innovators, these products are designed with the goal of helping investors amplify returns (up & down) while actively participating in the daily performance of their underlying stocks.
The new Cboe-listed ETFs are tailored to target 200% exposure to the daily performance of their underlying stocks, offering sophisticated traders and the retail investor efficient tools to help capitalize on market movements at a management fee of 0.75%.
The new ETFs are:
STXU – Leverage Shares 2X Long STX Daily ETF [Seagate Technology Holdings, NASDAQ: STX]
SNDG – Leverage Shares 2X Long SNDK Daily ETF [SanDisk Corp, NASDAQ: SNDK]
CIEG – Leverage Shares 2X Long CIEN Daily ETF [Ciena Corp, NYSE: CIEN]
CATG – Leverage Shares 2X Long CAT Daily ETF [Caterpillar Inc., NYSE: CAT]
HONG – Leverage Shares 2X Long HON Daily ETF [Honeywell International Inc., NASDAQ: HON]
AAOG – Leverage Shares 2X Long AAOI Daily ETF [Applied Optoelectronics Inc., NASDAQ: AAOI]
AMAU – Leverage Shares 2X Long AMAT Daily ETF [Applied Materials Inc., NASDAQ: AMAT]
ETNG – Leverage Shares 2X Long ETN Daily ETF [Eaton Corporation PLC, NYSE: ETN]
COHH – Leverage Shares 2X Long COHR Daily ETF [Coherent Corp, NYSE: COHR]
“This launch underscores our commitment to expanding access to high-conviction, single-stock trading strategies across a diverse set of market leaders. With these nine new 2X leveraged ETFs, we’re providing traders with precise, capital-efficient tools to actively engage with the daily performance of companies driving innovation across technology, industrials, and beyond.”– Paul Marino, Chief Revenue Officer, Themes ETFs
For more information about these ETFs and other products offered by Leverage Shares by Themes, please visit www.leverageshares.com/us
For media inquiries, please contact:
Arielle Shternfeld, Director, Communications and Advisor Relations
ashternfeld@themesetfs.com
+1 (860) 716-3686
About Themes ETFs:
Themes ETFs was established by the Co-Founders of Leverage Shares in 2023 to offer thematic and sector-based products in the US. Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. Themes ETFs seeks to provide investors with targeted exposure to specific segments of the market via its low-cost ETFs. For more information, visit www.themesetfs.com.
Story Continues
About Leverage Shares:
The company was launched in 2017 by CEO Jose Gonzalez-Navarro, COO Dobromir Kamburov and General Counsel Tracy Grant (the “Co-Founders”) and has 160+ ETPs offering both leveraged and unleveraged exposure to single stocks, ETFs and commodities across various exchanges in Europe. For more information, please visit www.leverageshares.com
INVESTMENT INVOLVES SIGNIFICANT RISK. Fund does not invest directly in the underlying stock. As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund.
An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about Themes ETFs. To obtain a Fund's prospectus and summary prospectus call 886-584-3637. A Fund's prospectus and summary prospectus should be read carefully before investing.
Newly launched Funds have risks associated with a limited operating history.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the underlying stock over the same period. The Fund will lose money if the underlying stock performance is flat over time, and because of daily rebalancing, the underlying stock’s volatility, and the effects of compounding, it is even possible that the Fund will lose money over time while the underlying stock’s performance increases over a period longer than a single day. The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose money if the underlying stock’s performance is flat, and it is possible that the Fund will lose money even if the underlying stock’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the price of the underlying stock falls by more than 50% in one trading day.
Under the Investment Advisory Agreement between the Adviser and the Trust, on behalf of the Fund (the “Investment Advisory Agreement”), the Adviser has agreed to pay all expenses of the Fund, except for the fee paid to the Adviser pursuant to the Investment Advisory Agreement, interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution (12b-1) fees and expenses.
Past performance does not guarantee future results.
INVESTMENT RISKS: Investing in the Funds involves a high degree of risk. As with any investment, there is a risk that you could lose all or a portion of your investment in the Funds.
Investment in leveraged products may be subject to higher volatility. Fund does not directly invest in the underlying stock. An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps is subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include effects of Compounding and Market Volatility Risk, Inverse Risk, Market Risk, Counterparty Risk, Rebalancing Risk, IntraDay Investment Risk, Daily Index Correlation Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Underlying Stock and the sector in which it operates. These and other risks can be found in the prospectus.
For periods longer than a single day, the Funds will lose money if STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR has flat performance, and it is possible that the Funds will lose money even if STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the price of STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR falls by more than 50% in one trading day.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (NBBO) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. NAVs are calculated using prices as of 4:00 PM Eastern Time. Indices are unmanaged and do not include the effect of fees, expenses, or sales charges. One cannot invest directly in an index.
This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.
Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. The funds are distributed by ALPS Distributors, Inc (1290 Broadway, Suite 1000, Denver, Colorado 80203). ALPS is not affiliated with any mentioned entity. Client brokerage services not offered by ALPS. Please see third party site for more information about any mentioned services. Themes ETFs are not sponsored, endorsed, issued, sold, or promoted by these entities, nor do these entities make any representations regarding the advisability of investing in the Themes ETFs. Neither ALPS Distributors, Inc, Themes Management Company LLC nor Themes ETFs are affiliated with these entities. Themes Management Company LLC and Leverage Shares are affiliates that are under common control. Themes Management Company and Leverage Shares have entered into a licensing agreement in which Leverage Shares licenses the trademark LEVERAGE SHARES to Themes Management Company LLC for use in financial services in the United States.
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- CORRECTION - Leverage Shares by Themes Targets Market Movers Across Tech and Industrials with Nine New 2X Single-Stock ETFs
May 12, 2026
GREENWICH, Conn., May 12, 2026 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Themes ETF Trust, please note the management fee in the second paragraph is now 0.75% rather than 0.35% as originally issued. The corrected release follows:
Leverage Shares by Themes is pleased to announce the launch of nine new 2X single-stock leveraged ETFs, available for trading beginning May 12, 2026. Built for active traders seeking dynamic ways to engage with potentially high-growth innovators, these products are designed with the goal of helping investors amplify returns (up & down) while actively participating in the daily performance of their underlying stocks.
The new Cboe-listed ETFs are tailored to target 200% exposure to the daily performance of their underlying stocks, offering sophisticated traders and the retail investor efficient tools to help capitalize on market movements at a management fee of 0.75%.
The new ETFs are:
STXU – Leverage Shares 2X Long STX Daily ETF [Seagate Technology Holdings, NASDAQ: STX]
SNDG – Leverage Shares 2X Long SNDK Daily ETF [SanDisk Corp, NASDAQ: SNDK]
CIEG – Leverage Shares 2X Long CIEN Daily ETF [Ciena Corp, NYSE: CIEN]
CATG – Leverage Shares 2X Long CAT Daily ETF [Caterpillar Inc., NYSE: CAT]
HONG – Leverage Shares 2X Long HON Daily ETF [Honeywell International Inc., NASDAQ: HON]
AAOG – Leverage Shares 2X Long AAOI Daily ETF [Applied Optoelectronics Inc., NASDAQ: AAOI]
AMAU – Leverage Shares 2X Long AMAT Daily ETF [Applied Materials Inc., NASDAQ: AMAT]
ETNG – Leverage Shares 2X Long ETN Daily ETF [Eaton Corporation PLC, NYSE: ETN]
COHH – Leverage Shares 2X Long COHR Daily ETF [Coherent Corp, NYSE: COHR]
“This launch underscores our commitment to expanding access to high-conviction, single-stock trading strategies across a diverse set of market leaders. With these nine new 2X leveraged ETFs, we’re providing traders with precise, capital-efficient tools to actively engage with the daily performance of companies driving innovation across technology, industrials, and beyond.”– Paul Marino, Chief Revenue Officer, Themes ETFs
For more information about these ETFs and other products offered by Leverage Shares by Themes, please visit www.leverageshares.com/us
For media inquiries, please contact:
Arielle Shternfeld, Director, Communications and Advisor Relations
ashternfeld@themesetfs.com
+1 (860) 716-3686
About Themes ETFs:
Themes ETFs was established by the Co-Founders of Leverage Shares in 2023 to offer thematic and sector-based products in the US. Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. Themes ETFs seeks to provide investors with targeted exposure to specific segments of the market via its low-cost ETFs. For more information, visit www.themesetfs.com.
About Leverage Shares:
The company was launched in 2017 by CEO Jose Gonzalez-Navarro, COO Dobromir Kamburov and General Counsel Tracy Grant (the “Co-Founders”) and has 160+ ETPs offering both leveraged and unleveraged exposure to single stocks, ETFs and commodities across various exchanges in Europe. For more information, please visit www.leverageshares.com
INVESTMENT INVOLVES SIGNIFICANT RISK. Fund does not invest directly in the underlying stock. As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund.
An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about Themes ETFs. To obtain a Fund's prospectus and summary prospectus call 886-584-3637. A Fund's prospectus and summary prospectus should be read carefully before investing.
Newly launched Funds have risks associated with a limited operating history.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the underlying stock over the same period. The Fund will lose money if the underlying stock performance is flat over time, and because of daily rebalancing, the underlying stock’s volatility, and the effects of compounding, it is even possible that the Fund will lose money over time while the underlying stock’s performance increases over a period longer than a single day. The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose money if the underlying stock’s performance is flat, and it is possible that the Fund will lose money even if the underlying stock’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the price of the underlying stock falls by more than 50% in one trading day.
Under the Investment Advisory Agreement between the Adviser and the Trust, on behalf of the Fund (the “Investment Advisory Agreement”), the Adviser has agreed to pay all expenses of the Fund, except for the fee paid to the Adviser pursuant to the Investment Advisory Agreement, interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution (12b-1) fees and expenses.
Past performance does not guarantee future results.
INVESTMENT RISKS: Investing in the Funds involves a high degree of risk. As with any investment, there is a risk that you could lose all or a portion of your investment in the Funds.
Investment in leveraged products may be subject to higher volatility. Fund does not directly invest in the underlying stock. An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps is subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include effects of Compounding and Market Volatility Risk, Inverse Risk, Market Risk, Counterparty Risk, Rebalancing Risk, IntraDay Investment Risk, Daily Index Correlation Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Underlying Stock and the sector in which it operates. These and other risks can be found in the prospectus.
For periods longer than a single day, the Funds will lose money if STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR has flat performance, and it is possible that the Funds will lose money even if STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the price of STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR falls by more than 50% in one trading day.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (NBBO) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. NAVs are calculated using prices as of 4:00 PM Eastern Time. Indices are unmanaged and do not include the effect of fees, expenses, or sales charges. One cannot invest directly in an index.
This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.
Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. The funds are distributed by ALPS Distributors, Inc (1290 Broadway, Suite 1000, Denver, Colorado 80203). ALPS is not affiliated with any mentioned entity. Client brokerage services not offered by ALPS. Please see third party site for more information about any mentioned services. Themes ETFs are not sponsored, endorsed, issued, sold, or promoted by these entities, nor do these entities make any representations regarding the advisability of investing in the Themes ETFs. Neither ALPS Distributors, Inc, Themes Management Company LLC nor Themes ETFs are affiliated with these entities. Themes Management Company LLC and Leverage Shares are affiliates that are under common control. Themes Management Company and Leverage Shares have entered into a licensing agreement in which Leverage Shares licenses the trademark LEVERAGE SHARES to Themes Management Company LLC for use in financial services in the United States.
- Which Optics Stock Has Dominated in 2026: Applied Optoelectronics, Lumentum, or Coherent?
May 12, 2026 · 247wallst.com
The optics complex has been one of 2026's most rewarding corners of the AI infrastructure trade, and the spread among the three leaders is surprisingly wide.
- Lumentum Stock Rises 6% After Q3 Earnings: Should You Hold or Fold?
May 12, 2026
Lumentum Holdings’ LITE shares have gained 6.1% since the company reported third-quarter fiscal 2026 results on May 5, driven by robust AI- and cloud-related demand. Revenues surged 90.1% year over year to $808 million, while non-GAAP earnings jumped to $2.37 per share from 57 cents in the year-ago quarter.
Both top and bottom lines exceeded analysts’ expectations. Revenues beat the Zacks Consensus Estimate by 0.37%, while earnings surpassed the consensus mark by 5.8%.
Lumentum’s strong quarterly performance was primarily driven by accelerating demand for AI infrastructure and cloud networking products. Growth was particularly strong in EML laser chips, cloud transceivers and scale-across networking components.
The company also benefited from improving product mix, pricing discipline and stronger operating leverage, which significantly boosted margins during the quarter.
LITE’s Strong Q4 Guidance Supports Bullish Momentum
For the fourth quarter of fiscal 2026, Lumentum expects revenues between $960 million and $1.01 billion. The company guided non-GAAP operating margin to 35-36% and non-GAAP earnings to $2.85-$3.05 per share, based on an effective tax rate assumption of 16.5% and approximately 102 million diluted shares.
Management indicated that transceivers are expected to be a major driver of sequential growth, supported by the ramp of 1.6T shipments in the fiscal fourth quarter. The company also expects continued progress in integrating internal CW lasers into its module portfolio. Management noted that nearly 20% of modules in the near-term mix could incorporate Lumentum’s own CW lasers, alongside ongoing yield improvements and lower scrap rates, which are expected to support profitability.
The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is currently pegged at $986.69 million, indicating more than 100% year-over-year growth. The consensus estimate for earnings is pegged at $2.69 per share, up 3.5% over the past 30 days.
Analyst sentiment also remains favorable for the longer term. Earnings estimates for fiscal 2026 and fiscal 2027 have increased 2.1% and 11.4%, respectively, over the past 30 days, reflecting optimism surrounding Lumentum’s expanding AI- and cloud-driven growth opportunities.Zacks Investment Research
Image Source: Zacks Investment Research
LITE Gains From Strong AI and Cloud Infrastructure Demand
Lumentum is benefiting significantly from robust AI and cloud infrastructure demand, which is driving strong adoption of its optical and photonic technologies across hyperscale data centers and next-generation networking deployments. The company noted that hyperscalers are increasingly shifting toward distributed “scale-across” data-center architectures to overcome power and space limitations, creating substantial demand for high-bandwidth optical interconnect technologies. Lumentum’s pump lasers, narrow linewidth laser assemblies and wavelength-selective switches are playing a critical role in enabling high-speed synchronization and optical routing across multiple data centers.
The company is also witnessing exceptional momentum across its key AI networking component portfolio. Shipments of narrow linewidth laser assemblies increased more than 120% year over year for the ninth consecutive quarter, while pump laser shipments rose 80% year over year. In laser chips, Lumentum achieved another quarterly shipment record, driven by accelerating adoption of 100-gig and 200-gig lane technologies. Revenues from 200-gig EML products more than doubled sequentially, while wafer fabrication capacity in Japan remains fully allocated to meet surging demand. The company expects more than 50% growth in EML units by the December quarter of 2026 compared with the prior-year period, reflecting sustained AI-driven infrastructure expansion.
Lumentum is also positioning itself to capitalize on future AI networking opportunities through co-packaged optics (CPO), optical circuit switching and next-generation transceiver technologies. Management highlighted its ultra-high-power laser chip manufacturing ramp for CPO applications remains on track, with meaningful revenue expected beginning in the December quarter and a multihundred-million-dollar purchase order scheduled for the first half of calendar 2027. The company also continues collaborating with multiple CPO customers to integrate its laser chip technologies into turnkey module solutions.
The technical setup for Lumentum remains bullish, with the stock trading above its 50-day and 200-day moving averages, suggesting sustained upside momentum in the near term.
Story Continues
LITE Trades Above the 50-Day and 200-Day SMAsZacks Investment Research
Image Source: Zacks Investment Research
Despite these strong AI-driven growth trends, several operational and financial challenges could temper investor enthusiasm going forward. Let’s analyze.
Challenges That May Limit Further Upside of Lumentum
Demand in some legacy businesses remained weak during the quarter. Management noted that industrial lasers stayed roughly flat sequentially, while cable access revenues declined due to customer timing factors.
Supply constraints also remain a major challenge. The company stated that shipments across several high-growth product areas continue to trail customer demand because of component shortages and supply-chain bottlenecks. Management further indicated that the supply-demand imbalance has widened to more than 30%, highlighting ongoing execution pressure despite aggressive capacity expansion initiatives.
Investors should also monitor balance-sheet risks. Current liabilities increased sharply, mainly due to the current portion of long-term debt rising to $3.24 billion from $10.6 million at fiscal 2025-end. The company also cited risks tied to debt servicing and compliance with revolving credit facility covenants.
LITE’s High Valuation Limits Upside Potential
Lumentum stock appears to be overvalued at the moment, limiting its near-term upside and increasing downside risk. The company currently carries a Zacks Value Score of F. In terms of forward price/sales (P/S), LITE trades at 15.78X, more than double the industry average of 6X.
Lumentum also trades at substantially higher valuation multiples compared with several industry peers, including Corning GLW, Belden BDC and Ciena CIEN. In 2026, Corning is benefiting from strong fiber-optic and connectivity demand tied to AI data center expansion, while Belden continues to gain from rising demand for high-speed networking and automation infrastructure. At the same time, Ciena is benefiting from accelerating investments in AI-driven optical networking capacity. Currently, Corning, Belden and Ciena trade at P/S multiples of 9.09X, 1.51X and 12.12X, respectively.
Lumentum’s premium valuation suggests investors are already pricing in sustained AI-driven growth and successful execution across next-generation optical networking opportunities. However, elevated multiples also increase the stock’s sensitivity to execution risks, supply constraints and any slowdown in hyperscale AI spending trends.
Price/Sales Ratio (F12M)Zacks Investment Research
Image Source: Zacks Investment Research
Stay Invested in LITE for the Long Run
Lumentum remains well-positioned to benefit from expanding AI and cloud infrastructure investments, supported by strong demand for optical networking technologies. However, supply constraints, elevated debt levels and premium valuation may limit near-term upside. Given the balanced risk-reward profile, existing investors may find holding LITE shares appropriate for long-term exposure to AI-driven networking growth.
Lumentum carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Ciena Corporation (CIEN) : Free Stock Analysis Report
Corning Incorporated (GLW) : Free Stock Analysis Report
Belden Inc (BDC) : Free Stock Analysis Report
Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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- Leverage Shares by Themes Targets Market Movers Across Tech and Industrials with Nine New 2X Single-Stock ETFs
May 12, 2026
Themes ETF Trust
GREENWICH, Conn., May 12, 2026 (GLOBE NEWSWIRE) -- Leverage Shares by Themes is pleased to announce the launch of nine new 2X single-stock leveraged ETFs, available for trading beginning May 12, 2026. Built for active traders seeking dynamic ways to engage with potentially high-growth innovators, these products are designed with the goal of helping investors amplify returns (up & down) while actively participating in the daily performance of their underlying stocks.
The new Cboe-listed ETFs are tailored to target 200% exposure to the daily performance of their underlying stocks, offering sophisticated traders and the retail investor efficient tools to help capitalize on market movements at a management fee of 0.35%.
The new ETFs are:
STXU – Leverage Shares 2X Long STX Daily ETF [Seagate Technology Holdings, NASDAQ: STX]
SNDG – Leverage Shares 2X Long SNDK Daily ETF [SanDisk Corp, NASDAQ: SNDK]
CIEG – Leverage Shares 2X Long CIEN Daily ETF [Ciena Corp, NYSE: CIEN]
CATG – Leverage Shares 2X Long CAT Daily ETF [Caterpillar Inc., NYSE: CAT]
HONG – Leverage Shares 2X Long HON Daily ETF [Honeywell International Inc., NASDAQ: HON]
AAOG – Leverage Shares 2X Long AAOI Daily ETF [Applied Optoelectronics Inc., NASDAQ: AAOI]
AMAU – Leverage Shares 2X Long AMAT Daily ETF [Applied Materials Inc., NASDAQ: AMAT]
ETNG – Leverage Shares 2X Long ETN Daily ETF [Eaton Corporation PLC, NYSE: ETN]
COHH – Leverage Shares 2X Long COHR Daily ETF [Coherent Corp, NYSE: COHR]
“This launch underscores our commitment to expanding access to high-conviction, single-stock trading strategies across a diverse set of market leaders. With these nine new 2X leveraged ETFs, we’re providing traders with precise, capital-efficient tools to actively engage with the daily performance of companies driving innovation across technology, industrials, and beyond.”– Paul Marino, Chief Revenue Officer, Themes ETFs
For more information about these ETFs and other products offered by Leverage Shares by Themes, please visit www.leverageshares.com/us
For media inquiries, please contact:
Arielle Shternfeld, Director, Communications and Advisor Relations
ashternfeld@themesetfs.com
+1 (860) 716-3686
About Themes ETFs:
Themes ETFs was established by the Co-Founders of Leverage Shares in 2023 to offer thematic and sector-based products in the US. Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. Themes ETFs seeks to provide investors with targeted exposure to specific segments of the market via its low-cost ETFs. For more information, visit www.themesetfs.com.
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About Leverage Shares:
The company was launched in 2017 by CEO Jose Gonzalez-Navarro, COO Dobromir Kamburov and General Counsel Tracy Grant (the “Co-Founders”) and has 160+ ETPs offering both leveraged and unleveraged exposure to single stocks, ETFs and commodities across various exchanges in Europe. For more information, please visit www.leverageshares.com
INVESTMENT INVOLVES SIGNIFICANT RISK. Fund does not invest directly in the underlying stock. As with any investment, there is a risk that you could lose all or a portion of your investment in the Fund.
An investor should carefully consider a Fund's investment objective, risks, charges, and expenses before investing. A Fund's prospectus and summary prospectus contain this and other information about Themes ETFs. To obtain a Fund's prospectus and summary prospectus call 886-584-3637. A Fund's prospectus and summary prospectus should be read carefully before investing.
Newly launched Funds have risks associated with a limited operating history.
Because of daily rebalancing and the compounding of each day’s return over time, the return of the Fund for periods longer than a single day will be the result of each day’s returns compounded over the period, which will very likely differ from 200% of the return of the underlying stock over the same period. The Fund will lose money if the underlying stock performance is flat over time, and because of daily rebalancing, the underlying stock’s volatility, and the effects of compounding, it is even possible that the Fund will lose money over time while the underlying stock’s performance increases over a period longer than a single day. The Fund is not suitable for all investors. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily leveraged (2X) investment results, understand the risks associated with the use of leverage and are willing to monitor their portfolios frequently. The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. For periods longer than a single day, the Fund will lose money if the underlying stock’s performance is flat, and it is possible that the Fund will lose money even if the underlying stock’s performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the price of the underlying stock falls by more than 50% in one trading day.
Under the Investment Advisory Agreement between the Adviser and the Trust, on behalf of the Fund (the “Investment Advisory Agreement”), the Adviser has agreed to pay all expenses of the Fund, except for the fee paid to the Adviser pursuant to the Investment Advisory Agreement, interest charges on any borrowings, taxes, brokerage commissions and other expenses incurred in placing orders for the purchase and sale of securities and other investment instruments, acquired fund fees and expenses, accrued deferred tax liability, extraordinary expenses, and distribution (12b-1) fees and expenses.
Past performance does not guarantee future results.
INVESTMENT RISKS: Investing in the Funds involves a high degree of risk. As with any investment, there is a risk that you could lose all or a portion of your investment in the Funds.
Investment in leveraged products may be subject to higher volatility. Fund does not directly invest in the underlying stock. An investment in the Fund involves risk, including the possible loss of principal. The Fund is non-diversified and includes risks associated with the Fund concentrating its investments in a particular industry, sector, or geographic region which can result in increased volatility. The use of derivatives such as futures contracts and swaps is subject to market risks that may cause their price to fluctuate over time. Risks of the Fund include effects of Compounding and Market Volatility Risk, Inverse Risk, Market Risk, Counterparty Risk, Rebalancing Risk, IntraDay Investment Risk, Daily Index Correlation Risk, Other Investment Companies (including ETFs) Risk, and risks specific to the securities of the Underlying Stock and the sector in which it operates. These and other risks can be found in the prospectus.
For periods longer than a single day, the Funds will lose money if STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR has flat performance, and it is possible that the Funds will lose money even if STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR performance increases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day if the price of STX, SNDK, CIEN, CAT, HON, AAOI, AMAT, ETN, or COHR falls by more than 50% in one trading day.
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (NBBO) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. NAVs are calculated using prices as of 4:00 PM Eastern Time. Indices are unmanaged and do not include the effect of fees, expenses, or sales charges. One cannot invest directly in an index.
This information is not an offer to sell or a solicitation of an offer to buy shares of any Funds to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.
Themes Management Company LLC serves as an adviser to the Themes ETFs Trust. The funds are distributed by ALPS Distributors, Inc (1290 Broadway, Suite 1000, Denver, Colorado 80203). ALPS is not affiliated with any mentioned entity. Client brokerage services not offered by ALPS. Please see third party site for more information about any mentioned services. Themes ETFs are not sponsored, endorsed, issued, sold, or promoted by these entities, nor do these entities make any representations regarding the advisability of investing in the Themes ETFs. Neither ALPS Distributors, Inc, Themes Management Company LLC nor Themes ETFs are affiliated with these entities. Themes Management Company LLC and Leverage Shares are affiliates that are under common control. Themes Management Company and Leverage Shares have entered into a licensing agreement in which Leverage Shares licenses the trademark LEVERAGE SHARES to Themes Management Company LLC for use in financial services in the United States.
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- Lumentum Stock Rises 6% After Q3 Earnings: Should You Hold or Fold?
May 12, 2026 · zacks.com
Shares of LITE gain after Q3 results beat estimates, fueled by AI and cloud demand, but supply constraints and high valuation may cap near-term gains.
- This Analyst Just Raised the Price Target on Coherent Stock by 50%. What to Know.
May 11, 2026
Coherent (COHR) shares closed meaningfully higher on May 11 after Stifel’s senior analyst Ruben Roy issued a constructive note in favor of the optical networking specialist.
Roy maintained a “Buy” rating on COHR this morning and raised his price target sharply to $412, indicating potential upside of another 8% from current levels.
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Stifel’s bullish call on Coherent stock is particularly significant given it’s already up a remarkable 95% year-to-date.www.barchart.com
Coherent Stock Is Strongly Positioned for Further Gains
Roy’s decision to raise his price target on COHR shares is rooted in the U.S. hyperscalers’ plans of accelerating capital expenditures by a whopping 67% on a year-over-year basis in 2026.
According to him, the NYSE-listed firm is a primary beneficiary of the "Scale-Out” and “Scale-Up” frameworks essential for artificial intelligence (AI) data centers.
Stifel also cited order visibility for its positive view on Coherent, which now extends from 12 months to 18 months, a significant increase from historical norms.
With supply-side scarcity at the critical laser layer, Ruben Roy expects COHR to deliver consistent beat-and-raise results as the AI infrastructure cycle enters its next phase of expansion.
Why Else Is Stifel Bullish on COHR Shares?
In a research note dated May 11, Stifel analysts led by Ruben Roy dubbed Coherent shares a "top pick” among optical networking names, outpacing rivals like Lumentum (LITE) and Ciena (CIEN).
Its bullish thesis is further supported by COHR’s dominance in upstream components, specifically InP and EML lasers required for 800G and 1.6T transceivers.
As Nvidia (NVDA) and other AI chipmakers push for higher bandwidth, the firm’s vertical integration provides a competitive moat.
Stifel also believes the company’s recent advancements in silicon carbide and 10kV power devices for industrial AI applications offer a secondary, high-margin growth lever through mid-2026.
Note that Coherent currently sits firmly above its key moving averages (MAs), with an RSI in the late 60s, reinforcing that it’s in a strong uptrend.
How Wall Street Recommends Playing Coherent
Other Wall Street analysts seem to agree with Ruben Roy on COHR stock as well.
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The consensus rating on Coherent sits at “Strong Buy” currently, with price targets as high as $455, indicating potential upside of nearly 20% from here.www.barchart.com
This article was created with the support of automated content tools from our partners at Sigma.AI. Together, our financial data and AI solutions help us to deliver more informed market headline analysis to readers faster than ever.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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- Ciena Corp (CIEN) Stock Up 6.1% but GF Value Says Overvalued -- GF Score: 74/100
May 11, 2026 · gurufocus.com
On May 11, 2026, Ciena Corp (CIEN) shares rose 6.1% today, continuing a strong performance within a 52-week range of $70.77 to $593.00. With a current price of
