Lumentum Holdings shares surge 8.35% intraday as Fidelity Growth Strategies Fund boosts stake and analysts raise price targets.

Lumentum Holdings (LITE) surged 8.35% intraday, driven by a combination of strong fundamentals and technical momentum. The stock’s rally aligns with Fidelity Growth Strategies Fund’s fourth-quarter 2025 investor letter, which highlighted Lumentum’s 33.68% monthly return and a 402% gain over 12 months, citing robust performance in its Cloud & Networking segment and an overweight position. Concurrently, technical indicators confirmed bullish momentum, including a golden cross, expanding Bollinger Bands, and elevated trading volume exceeding 12 million shares. Analyst upgrades further reinforced optimism, with Citigroup raising its price target to $560 and Northland Securities setting a $600 target. The confluence of outperforming earnings, strategic institutional focus, and technical strength underpinned the intraday surge.