Lumentum Falls 10% as Optics Selloff Hits Hardest Where Capacity Is Sold Out; Applied Optoelectronics Drops 7%, Coherent Slides 7%

Impact · against what's priced in

The selloff in AI optics is a technical and valuation-driven correction rather than a fundamental shift, as the news confirms that demand remains robust. For Lumentum and Coherent, the market is discounting their valuation multiples despite order books that remain sold out, suggesting the price is sensitive to multiple compression even when revenue visibility is high.

COHR−0.10

Already priced in

The price assumes

The existing backlog of orders that extends into 2028, which management has publicly confirmed.