We simply lined the 12 Greatest AI Knowledge Middle Shares to Purchase Proper Now and Lumentum Holdings Inc. (NASDAQ:LITE) ranks 4th on this record.
Lumentum Holdings Inc. (NASDAQ:LITE) inventory has been within the headlines just lately after the corporate introduced a multi-year deal for Optical Circuit Switching (OCS) merchandise value billions of {dollars} in the course of the Optical Fiber Communication Convention 2026. Analysts at Stifel and JPMorgan have indicated that this deal doubtless entails a Magnificent Seven hyperscaler, broadly rumored to be Google or Amazon, trying to bypass conventional electrical switches for sooner, light-based networking. Along with this blockbuster announcement, the agency additionally continues to execute financially throughout all essential metrics.
In Q2 2026, Lumentum Holdings Inc. (NASDAQ:LITE) reported an EPS of $1.67, beating the consensus estimate of $1.23 by 35.8%. Quarterly income reached $665.5 million, a 65.5% year-over-year improve. Non-GAAP working margins expanded by over 1,500 foundation factors in late 2025, signaling that Lumentum is changing into considerably extra worthwhile because it scales. The corporate has been rising as a secondary play on NVIDIA’s newest structure as effectively. Lumentum’s 1060nm VCSEL know-how is now getting used for scale-up networks that join HBM4 reminiscence on to GPUs. In contrast to conventional silicon photonics, Lumentum’s VCSEL platform offers a extremely dependable various that elite traders see as a hedge in opposition to provide chain constraints at different photonics companies.
Whereas we acknowledge the potential of LITE as an funding, we imagine sure AI shares provide larger upside potential and carry much less draw back danger. If you happen to’re in search of a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the greatest short-term AI inventory.
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