Why Lumentum Holdings Inc. (LITE) Went Down On Thursday?

We recently published a list of 10 Firms Take a Beating on Tariff Worries. In this article, we are going to take a look at where Lumentum Holdings Inc. (NASDAQ:LITE) stands against other Thursday’s worst performers.

Wall Street’s three major indices suffered a bloodbath on Thursday as investors continued to digest news of President Donald Trump’s tariff rollout on imports.

The tech-heavy Nasdaq fell the heaviest, down by nearly 6 percent. The S&P 500 dropped by 4.84 percent and the Dow Jones was down by 3.98 percent.

Ten individual stocks, predominantly under the retail sector, mirrored a broader market pessimism, finishing the day in the negative territory as investors sold off positions to mitigate risks.

In this article, we named Thursday’s worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2-billion market capitalization and $5 million in trading volume.

A close-up of a technician calibrating a laser beam.

Lumentum Holdings Inc. (NASDAQ:LITE)

Lumentum Holdings fell by 20 percent on Thursday to finish at $53.45 apiece as investors resorted to profit-taking following Wednesday’s surge while also repositioning portfolios to minimize risks from the ongoing trade war.

Earlier in the week, LITE surged following announcements that it achieved a new speed benchmark of 448 Gbps data transmission, a milestone that addresses the escalating bandwidth demands of artificial intelligence and machine learning applications which require ultra-fast, real-time data processing.

LITE partnered with NTT Innovative Devices and Keysight Technologies for the project.

“Achieving 448 Gbps transmission is a significant milestone in advancing optical interconnects for AI-driven cloud infrastructure. This collaboration underscores Lumentum’s expertise in photonics and our commitment to delivering cutting-edge optical components that support the rapid expansion of AI and cloud data centers,” said LITE Chief Technology Officer Matthew Sysak.

“As AI and ML applications require real-time processing of ever-growing datasets, our high-performance externally modulated lasers will be instrumental in enabling faster, more efficient, and scalable data center networks,” he added.

Overall, LITE ranks 8th on our list of Thursday’s worst performers. While we acknowledge the potential of LITE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LITE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.