Lumentum Holdings experienced a pre-market plunge of 5.18% on Friday, extending a pattern of volatile price action in the optical communication sector.
The sharp decline comes as traders engage in profit-taking at elevated levels ahead of the company's official addition to the Nasdaq-100 Index. Lumentum's stock has been swinging between gains and losses since the announcement of its Nasdaq-100 inclusion, reflecting market uncertainty and position adjustments by investors balancing index-inclusion buying momentum against selling pressure.
The broader optical communication sector has seen selling pressure this week following a recent sharp rally that had pushed multiple stocks to record highs. Lumentum, a leading supplier of laser chips and photonic components critical to AI data center optical interconnects, had been trading at all-time highs as a core supplier to major tech companies.
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