Lumentum Holdings Inc. (NASDAQ:LITE) stock is trading higher on Thursday. The California-based technology firm is experiencing upward momentum alongside other companies in the fiber optic connectivity sector.
The Nasdaq is up 1.55% while the S&P 500 has gained 0.72%.
• Lumentum Holdings stock is surging to new heights today. Why are LITE shares rallying?
Sector Catalysts Boost Demand Outlook
Catalysts driving the broader fiber optic connectivity sector include reports detailing massive digital infrastructure expansions. According to an internal memo reviewed by Reuters, Meta Platforms Inc. (NASDAQ:META) plans to expand its overall computing power to 14 gigawatts next year. The social media giant aims to start manufacturing its in-house artificial intelligence data center chip, code-named “Iris,” in September as part of its Meta Training and Inference Accelerators project.
Meta declined to comment on the development following a Benzinga inquiry.
Infrastructure Expansions Signal Sustained Appetite
Further industry momentum stems from an announcement by MARA Holdings, Inc. (NASDAQ:MARA). The company entered a definitive agreement to acquire a 1,200-acre land site in Matagorda County, Texas, from HIF USA LLC. The site provides access to up to 2 gigawatts of power capacity by April 2028, underscoring the ongoing expansion of digital infrastructure and high-performance computing capabilities.
Decreasing Short Interest Supports Upside
Market data indicates that short interest in Lumentum decreased during the latest reporting period, dropping from 10.22 million to 9.29 million shares. This short interest accounts for 13.22% of the company’s publicly available float. Based on an average daily trading volume of 6.21 million shares, short sellers would require 1.5 days to cover their positions.
LITE Stock: Key Levels and Momentum Indicators
Even after today’s jump, Lumentum is still trading 5.3% below its 20-day SMA and 11.3% below its 50-day SMA, which keeps the near-term trend in “repair mode” despite the strong session. At the same time, the stock remains 42.1% above its 200-day SMA, so the longer-term uptrend is still intact even with recent volatility. RSI is the cleaner momentum read right now: at 46.23.
The moving-average structure is mixed, with the 20-day SMA below the 50-day SMA (a bearish near-term alignment) even as the 50-day SMA remains above the 200-day SMA (a bullish longer-term backdrop). That combination often produces sharp countertrend rallies that still need follow-through to flip the short-term trend back up.
- Key Resistance: $809 — Nearby round-number area that also sits close to the 100-day SMA zone, where rebounds can stall.
- Key Support: $776 — Nearby pivot area just above the 100-day EMA, where buyers may try to defend the recent base.
LITE Stock Price Activity: Lumentum stock was up 12.33% at $794.30 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: Piotr Swat on Shutterstock.com
