Lumentum shares are up about 4% in Thursday trading (April 9, 2026) as investors continue buying after a fresh bullish analyst update late this week. Mizuho raised its price target on Lumentum to $930 from $750 and maintained an Outperform rating, framing Lumentum as a prime beneficiary of co-packaged optics (CPO) adoption and next-generation AI data-center networking upgrades. (investing.com)

Mizuho’s note pointed to a CPO “inflection” expected in the second half of 2026 around NVIDIA’s Spectrum‑X and Quantum‑X platform launches, with a longer runway for scale-up CPO ramping into 2028 and beyond. The thesis builds on Lumentum’s strategic positioning in advanced optics for AI data centers, a theme reinforced by NVIDIA’s multiyear strategic agreements with Lumentum that include a $2 billion investment intended to expand capacity and deepen R&D collaboration in data-center optics. (investing.com)

After a sharp run in AI-optics names this year, incremental upgrades and higher targets can act as near-term fuel by pulling in momentum buyers and forcing repositioning, especially when the upgrade is anchored to a concrete product-cycle timeline (2H 2026) rather than a purely long-dated narrative. Next catalysts that can validate (or challenge) the rerating are updates on CPO design wins and production scaling tied to NVIDIA’s roadmap, plus any incremental commentary from Lumentum on capacity expansion and commercialization timing for next-gen optics.