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0 0.000436766798206838 0.00174491959947393 0.00255026710692343 0.00136909076266422 0.00158385009798403 0.00265764677458326 0.00319454511288302
Stock impact report

Lumentum's AI Optics Business Got A Major Boost [Seeking Alpha]

Lumentum Holdings Inc. (LITE) 
Last lumentum holdings inc. earnings: 2/4 07:30 am Check Earnings Report
Company Research Source: Seeking Alpha
LITE's Cloud & Networking segment now comprises 86% of revenue, with FY26 revenue projected to surge 61% to $2.64B and EPS growth of 184%. Dominant in externally modulated lasers (EMLs), LITE benefits from strong demand, pricing power, and key relationships with Nvidia and hyperscalers. A recently announced $6B deal with Lumentum's indirect peer highlights surging interest in optical solutions for the data center, boosting Lumentum's outlook. I initiate with a bullish rating, viewing LITE's 63x FY26 EPS multiple as justified by accelerating demand and market leadership, despite elevated leverage risks. pingingz/iStock via Getty Images Investment Thesis Scale-up and scale-out networks are in the initial innings of the next phase in AI networking, where DC (data center) architects solve for not only lower DC build costs, a.k.a. TCO (total cost of ownership), but also lessen the complexities This article was written by Analyst's Disclosure: I/we have no stock, option or Show less Read more
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