: US stocks ended Tuesday on a mixed note as investors weighed the latest labor market data and ongoing shifts within the market, marking another cautious session on Wall Street.S&P 500 and Dow Fall for Third Straight Session, Nasdaq GainedThe S&P 500 slipped for a third straight day, falling 0.24% to close at 6,800.26, the Dow Jones Industrial Average dropped more sharply, losing 302.30 points, or 0.62%, to finish at 48,114.26, as per a CNBC report. The Nasdaq Composite managed to buck the trend, edging u ...

Key Takeaways APLD and LITE have both delivered more than 200% returns in 2025 on surging AI infrastructure demand.APLD's long-term prospects ride on accelerating spending on AI infrastructure by hyperscalers.LITE is developing and providing photonic solutions for AI applications, particularly for data centers. The artificial intelligence (AI) saga, supported by the massive growth of cloud computing and data centers, is yet to unfold fully. Solid demand from AI infrastructure end markets such as hyperscale ...

Lumentum Holdings Inc.’s ( LITE ) share price has been on a tear this past year, and deservedly so, since its sales have grown massively, and profitability improved substantially, leading to a share price appreciation of over 260%. I wanted to takeMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also se ...

Artificial intelligence is entering a new phase of infrastructure expansion, and one of the most important technologies enabling that growth is photonics. As AI models scale, the limiting factor is no longer pure compute, but the movement of data itself. Copper interconnects are approaching hard physical and power limits, creating a choke point for training and inference workloads.That’s where photonics comes in. Optical interconnects, silicon photonics, and co-packaged optics are emerging as essential solu ...

Lumentum Holdings Inc (NASDAQ:LITE) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.At 11:04 AM EST on December 12, LITE triggered a Power Inflow signal at a price of $327.32. LITE had seen a steep decrease in the stock price leading up to the Power Inflow alert, dropping by as much as 9% in the opening hour of trading. At the time of the signal, and shortly after, b ...

Core Insights - Lumentum Holdings Inc. is identified as a high short interest stock with significant growth potential, supported by a price target increase from JPMorgan to $350 from $235, maintaining an Overweight rating [1] - The company reported record quarterly revenue of $533.8 million for FQ1 2026, reflecting a 58% year-over-year increase, with AI and cloud infrastructure contributing over 60% of total revenue [2] - Lumentum is experiencing a supply-demand imbalance, with demand exceeding supply by 25% to 30%, leading to targeted price increases and anticipated broader pricing adjustments in 2026 [3] Financial Performance - Total revenue for FQ1 2026 reached $533.8 million, marking a 58% increase year-over-year [2] - Components revenue was $379.2 million, growing 18% sequentially and 64% year-over-year, while systems revenue was $154.6 million, down 4% sequentially but up 47% year-over-year [2] - For FQ2, Lumentum expects total revenue between $630 million and $670 million [3] Market Opportunities - JPMorgan highlights new opportunities in "scale-across" and "multi-rail" infrastructure, which are expected to enhance the company's market outlook [1] - Lumentum aims to achieve $100 million in quarterly revenue from the Optical Circuit Switch market by December 2026 [3] Company Overview - Lumentum Holdings manufactures and sells optical and photonic products across various regions, operating through two segments: Cloud & Networking and Industrial Tech [4]

Question-and-Answer SessionSo it's been some crazy times of late. You've seen an unprecedented demand in AI kind of come into the market. You guys have talked about certain areas in your portfolio in which things have gotten tight. So maybe start with like a mark-to-market. Where are you seeing tightness? Is this across the portfolio? And then maybe how long do you think that dynamic lasts?Wupen YuenPresident of Global Business Unit Yes. Actually, to be honest, I think the short summary is that we're seeing ...

Lumentum has benefited from AI in the short term, but Alphabet likely has the better long-term opportunity.Artificial intelligence (AI) has created huge winners across the tech industry, with some companies posting triple-digit returns over the past year. Among them is the optical and photonic components manufacturer Lumentum Holdings (LITE +4.07%), which has surged 267% year-to-date. There's no doubt the company's growth has been impressive, and it's possible that its stock could continue to be a winner fo ...

Summary of Lumentum FY Conference Call Company Overview - **Company**: Lumentum (NasdaqGS: LITE) - **Date of Conference**: December 10, 2025 Key Industry Insights - **Industry**: Optical and Photonic Technologies - **Current Market Dynamics**: - Unprecedented demand in AI and optical technologies - Capacity constraints across all product lines due to high demand exceeding supply [10][12][121] Core Points and Arguments 1. **Capacity Constraints**: - All product lines are currently capacity constrained, with demand exceeding supply [10] - Specific products like indium phosphide lasers and scale-across optics are particularly tight [10][11] - EML lasers are sold out for 2026 and largely booked through 2027, indicating strong demand [13] 2. **Pricing Dynamics**: - Pricing is expected to increase due to the seller's market, with longer-term contracts not offering discounts [18] - Larger customers are willing to commit to longer contracts, which helps secure supply [18] 3. **Customer Supply Allocation**: - Supply allocation is based on customer commitment and strategic importance, ensuring no favoritism among major clients [25] - The company aims to support all cloud customers fairly [25] 4. **Product Capacity Increase**: - A 40% capacity increase for EMLs is on track, with incremental improvements expected over the next quarters [26][30] - Multiple tools are being utilized to address capacity needs, rather than a single bottleneck [32][34] 5. **Market Trends**: - Silicon Photonics (SiPho) is expected to gain market share, but EMLs currently have better gross margins [39] - The transition to 1.6T technology is anticipated, with flexibility in capacity allocation between EML and SiPho lasers [46][50] 6. **Optical Switching (OCS)**: - OCS is projected to grow significantly, with expectations of reaching around $100 million per quarter by December 2026 [70] - OCS is currently supplementing packet switching rather than cannibalizing it, with a growing interest from AI model companies [78] 7. **CPO Technology**: - CPO (Co-Packaged Optics) is expected to see significant adoption by 2027, with projections of 40%-50% of switches being CPO-based by 2028 [91] - The transition to scale-up architectures is anticipated but will require careful planning due to power consumption and capacity considerations [97] 8. **Optical Ports Growth**: - Estimated optical ports for 2026 are projected to be around 60-75 million, nearly doubling year-over-year [104][106] - The majority of these ports will be driven by hyperscalers, indicating strong demand in the data center market [116] 9. **Customer Relationships**: - The company is focusing on serving its three major customers effectively, as demand from these clients is high [120] - Capacity remains the primary constraint in meeting customer demand, with a need to ensure reliable production [121] 10. **Broad-Based Growth in Telco**: - The telco business is experiencing broad-based growth, driven by increased demand across various product lines [141] - The company anticipates continued strong growth in data center optics and related technologies [142] Additional Important Insights - The company is cautious about expanding its customer base due to current capacity constraints, focusing instead on existing relationships [121] - The supply chain for OCS is still developing, which may limit growth in the short term but is not expected to face the same constraints as laser technologies [82] - The overall market for optical technologies is expected to grow rapidly, with significant opportunities for Lumentum in both existing and new applications [142]

Lumentum Holdings Inc. ( LITE ) is trading well above its long term fundamental value, priced above what its otherwise sound business model justifies in an environment of secular AI demand tailwinds. The risk-reward asymmetry is not favorableI am a stock analyst with over 20 years of experience in quantitative research, financial modeling, and risk management. My focus is on equity valuation, market trends, and portfolio optimization to uncover high-growth investment opportunities. As a former Vice Presiden ...