These Nvidia-Backed Optical Stocks Have Slipped Lately. JPMorgan Analysts Recommend Buying The Dip

JPMorgan reiterated overweight ratings on Nvidia-backed chip/optical networking names Coherent and Lumentum after both stocks pulled back roughly 20% from recent highs. The bank argued concerns around slower summer catalysts and adoption of co-packaged optics are overblown, viewing the decline as a buying opportunity. JPMorgan kept price targets at $380 for Coherent and $1,130 for Lumentum. The article suggests the note could support sentiment in AI infrastructure stocks, which had rallied sharply on Nvidia’s investment and collaboration announcements earlier this year. At the time of the report, Coherent was up 1% in late trading and Lumentum more than 3%, with both still posting strong year-to-date gains.