On June 2, Lumentum Holdings rose 3.09% in pre-market trading, trading at $933.71 USD/share, with trading volume of approximately $17.47 million. The stock rebounded following a prolonged pullback since its inclusion in the Nasdaq 100 index in mid-May.

On the news front, Lumentum announced agreements with noteholders to exchange approximately $650.4 million of its 0.50% convertible senior notes due 2028 for roughly 5 million shares of common stock. The company will not receive any cash from the transaction but will cancel the exchanged debt. After the deal closes, only about $172.2 million of the convertible notes will remain outstanding, significantly optimizing the company's balance sheet. The exchange will result in modest additional share dilution of about 0.8 million shares tied to the principal amount.

Additionally, the optical chip sector is experiencing renewed momentum. NVIDIA previously announced a $2 billion investment in Lumentum and signed a multi-year procurement agreement locking in 800G/1.6T high-end optical chip capacity. As the global leader in InP EML chips with 90% market share in 200G EML products, Lumentum's orders are booked through 2028 with production lines running at full capacity. Analysts maintain a buy rating with a target price of $1,186.

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