Why Lumentum (LITE) Remains Tied to the Optical Bottleneck Inside AI Data Centers

17 hours ago 4

Habib Ur Rehman

Fri, June 19, 2026 astatine 9:34 AM CDT 1 min read

Lumentum Holdings Inc. (NASDAQ:LITE) is 1 of the fastest-growing AI infrastructure stocks to buy. On June 11, 2026, J.P. Morgan reiterated an Overweight standing connected Lumentum and argued that capitalist concerns astir co-packaged optics adoption were overstated. The steadfast pointed to continued advancement from NVIDIA and broader lawsuit involvement successful co-packaged and near-packaged optics, keeping Lumentum intimately tied to the optical furniture of AI information centers. That furniture is becoming much important arsenic AI clusters necessitate faster, lower-latency links betwixt chips, switches, racks, and information halls.

Lumentum's caller maturation already reflects that request shift. In its fiscal third-quarter 2026 results, the institution reported gross of $808.4 million, up 90% from $425.2 cardinal a twelvemonth earlier, portion GAAP nett income improved to $144.2 cardinal from a nett nonaccomplishment of $44.1 million. Management besides highlighted co-packaged optics and optical circuit switches arsenic aboriginal net drivers.

Why Lumentum (LITE) Remains Tied to the Optical Bottleneck Inside AI Data Centers

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Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products for unreality networking, AI information centers, telecom, industrial, and sensing applications.

While we admit the imaginable of LITE arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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