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Why Lumentum Sank Today

The Motley Fool·
Why Lumentum Sank Today

Lumentum stock fell 9.8% on Monday following cautionary comments from Broadcom CEO Hock Tan over the weekend. Tan suggested many investors don't understand their AI investments and compared enterprise AI token usage to a 'casino,' questioning whether current AI spending will lead to sustainable, profitable business models. This sparked a broader pullback in AI infrastructure stocks, hitting Lumentum particularly hard after it surged to all-time highs the previous week when its CEO announced near sell-out status through 2029.

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