Lumentum Holdings is set to join the Nasdaq-100 index on May 18, furthering its rapid growth amid increasing demand for its optoelectronics technology crucial for the artificial intelligence boom. This inclusion reflects the company’s strong market position, with its stock soaring nearly 190% in 2026 alone, following a remarkable 339% increase in 2025. Lumentum’s technology is vital for high-performance connectivity in data centers, and its stock rally is part of a broader trend as the Nasdaq-100, a key indicator of technology performance, has outpaced other growth indexes this year.
Coherent: Coherent develops optical innovations including transceivers and lasers tailored for AI data center demand. Recent earnings highlighted accelerating growth in datacenter optics alongside capacity expansions. Its shares rose sharply following Lumentum’s Nasdaq-100 inclusion, reflecting sector momentum.
CoStar Group: CoStar Group is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twins. The company offers forecasts and benchmarks for sectors like retail and hospitality properties. It is being replaced by Lumentum in the Nasdaq-100 index amid underperformance.
Michael Hurlston: Michael Hurlston serves as President and CEO of Lumentum Holdings. With extensive leadership in technology sectors, he oversees the company’s optical product strategy. In a recent earnings call, he discussed surging demand for high-bandwidth components in AI-driven data center expansions.
Lumentum Holdings: Lumentum Holdings provides optical components, transceivers, and lasers that enable high-density optical interconnects for data centers using light instead of copper. The company has seen heightened demand for its technology to support scale-out networks in the AI ecosystem. Its recent inclusion in the Nasdaq-100 index replacing CoStar Group underscores its rapid ascent driven by AI infrastructure needs.
Applied Optoelectronics: Applied Optoelectronics is a provider of advanced optical connectivity products for data center networking. It recently reported results emphasizing its role in fiber-optic solutions. The company’s stock advanced alongside peers after news of Lumentum joining the Nasdaq-100.
Index Inclusion: Lumentum’s addition to the Nasdaq-100 validates its position in AI optical infrastructure as tracked by major investment vehicles.
AI Optics Demand: Optoelectronics technology is viewed as essential for the AI boom, enabling high-performance connectivity across data centers.
Sector Recognition: The Nasdaq-100 is seen as a strong gauge for tech-heavy AI buildout trends compared to broader growth indexes.