Core Insights - UBS reported a total market value of $620 billion in Q4, reflecting a decrease of 5.65% from the previous quarter [3] - The firm made 1,347 new stock purchases and increased holdings in 4,181 stocks, while reducing holdings in 4,520 stocks and completely selling out of 1,188 stocks [3] - The top ten holdings accounted for 14.52% of the total market value [3] Top Holdings - NVIDIA (NVDA.US) is the largest holding with approximately 77.49 million shares valued at $14.45 billion, representing 2.34% of the portfolio, down 11.47% from the previous quarter [1][4] - Microsoft (MSFT.US) ranks second with about 28.04 million shares valued at $13.56 billion, making up 2.20% of the portfolio, a decrease of 7.64% [2][4] - Apple (AAPL.US) is third with around 44.55 million shares valued at $12.11 billion, accounting for 1.96% of the portfolio, down 10.57% [2][4] - Broadcom (AVGO.US) is fourth with approximately 23.77 million shares valued at $8.23 billion, representing 1.33% of the portfolio, an increase of 0.88% [2][4] - Amazon (AMZN.US) is fifth with about 34.61 million shares valued at $7.99 billion, making up 1.30% of the portfolio, down 4.57% [2][4] Notable Changes - UBS reduced its holdings in several tech stocks, including Micron Technology (MU.US) by 16.14%, TSMC (TSM.US) by 15.56%, Oracle (ORCL.US) by 1.91%, AMD (AMD.US) by 24.28%, and Western Digital (WDC.US) by 37.92% [5] - The firm slightly increased its position in Meta (META.US) by 0.85% among the "seven giants" [4] - New positions were established in Total (TTE.US) and increased holdings in Walmart (WMT.US), Alibaba (BABA.US), and Bitcoin holding company Strategy (MSTR.US) [5] Trading Activity - The top five purchases included Microsoft call options, SPDR S&P 500 ETF (SPY.US), MP Materials call options, UBS Group AG, and iShares 7-10 Year Treasury ETF put options [5][6] - The top five sales included SPDR S&P 500 ETF put options, Invesco QQQ Trust put options, iShares iBoxx High Yield Corporate Bond put options, Microsoft, and NVIDIA [5][6]

We recently published 10 Stocks Withstanding Market Turbulence. Lumentum Holdings Inc. (NASDAQ:LITE) was one of the best performers on Thursday. Lumentum extended its winning streak to a 5th consecutive day on Thursday, hitting a new all-time high as investors digested its strong earnings performance in the second quarter of fiscal year 2026. At intra-day trading, the stock surged to its highest price of $507.55 before paring gains to finish the session just up by 8.35 percent at $504.42 apiece. In an ...

Core Viewpoint - The article discusses the ongoing debate between CPO (Co-Packaged Optics) and NPO (Near-Packaged Optics) technologies, highlighting their respective advantages and challenges in the optical module market [2][3]. Summary by Sections CPO and NPO Overview - CPO and NPO are two competing optical technologies, with CPO utilizing 3D packaging for integration, while NPO employs 2D packaging, allowing for easier maintenance and higher maturity [7]. - CPO's main drawbacks include low yield rates and maintenance issues, as failures in the optical engine require the entire switch to be replaced [4][5]. Technical Comparisons - A comparison table shows that CPO has a power consumption of approximately 10W, while NPO ranges from 10-15W, and traditional modules consume 20-30W. CPO also has lower loss (2-3dB) compared to NPO and traditional modules [5]. - CPO is theoretically cheaper, but practical challenges in yield and maintenance may affect its cost-effectiveness [5]. Industry Insights from Lumentum - Lumentum reported significant orders for high-performance laser systems supporting CPO applications, with expectations for substantial shipments by mid-2027 [9]. - The company anticipates a shift from copper to optical solutions for short-distance connections, with initial CPO shipments expected by the end of 2027 [9]. Market Reactions and Company Strategies - Following Lumentum's announcements, there was a notable market reaction, with companies like Xuchuang experiencing stock fluctuations and holding emergency calls to reassure stakeholders [10][11]. - Xuchuang emphasized that NPO remains the mainstream path forward, predicting strong demand for optical modules in 2027 and aiming to transition from a supplier to a full-stack optical connection solution provider [11]. Industry Attitudes Towards CPO and NPO - Major cloud service providers like Google favor NPO for its open ecosystem, while others like NVIDIA initially supported CPO but have shifted towards NPO as it matures [12]. - Chip manufacturers show varied stances, with some adapting to support both CPO and NPO based on market needs, indicating a coexistence of technologies in the future [12].

Core Insights - Fidelity Growth Strategies Fund's fourth-quarter 2025 investor letter indicates a focus on midcap growth stocks, emphasizing quality companies with steady above-average growth potential [1] - The Fund returned -3.44% in Q4 2025, slightly outperforming the benchmark Russell Midcap® Growth Index, which returned -3.70% [1] - The U.S. stock market showed a rapid rebound driven by strong corporate fundamentals and significant spending on artificial intelligence [1] Company Performance - Lumentum Holdings Inc. (NASDAQ:LITE) is highlighted as a significant contributor to the Fund's performance, with a stock price of $465.54 per share as of February 4, 2026 [2] - Lumentum achieved a remarkable 33.68% return in the past month and a staggering 402.36% increase over the past twelve months, with a market capitalization of $33.24 billion [2] - The company reported a 65% surge in revenue in the second quarter of fiscal 2026, driven by strong performance in its Cloud & Networking segment, which constitutes about 80% of its business [4] Investment Strategy - The Fund maintained an overweight position in Lumentum Holdings, increasing its stake by 127% during the past three months due to better-than-expected quarterly earnings [3] - Despite Lumentum's potential, the Fund suggests that certain AI stocks may offer greater upside potential with less downside risk [4] - Lumentum is not among the 30 most popular stocks among hedge funds, although its holdings increased from 59 to 69 hedge fund portfolios from the previous quarter [4]

Group 1: Insurance Sector - Insurance stocks are experiencing significant declines, with China Life (02628) down 3.75%, New China Life (01336) down 3.28%, and China Pacific Insurance (02601) down 2.74%. The government plans to issue approximately 200 billion yuan in special bonds to inject capital into major insurance companies, marking the first time this method will be used for insurance firms in China [1] Group 2: Logistics and Delivery - ZTO Express (02057) has seen an increase of over 2.3%. The company estimates that its total revenue for 2025 will be between 48.5 billion yuan and 50 billion yuan, representing a growth of approximately 9.5% to 12.9% compared to 44.2807 billion yuan in 2024 [1] Group 3: Biotechnology - Innovent Biologics (09969) has risen over 4%, with a current increase of 3.25%. The company anticipates achieving revenue of 2.37 billion yuan in 2025, a year-on-year growth of approximately 134%, and expects to turn a profit with a net profit of around 630 million yuan [1] Group 4: Coal Sector - Coal stocks are generally declining, with Yancoal Australia (03668) down 6.63%, Shougang Resources (00639) down 7.83%, and China Shenhua (01088) down 2.47%. This decline follows reports that the Indonesian government has proposed a production cut plan, leading to a 40% to 70% reduction in production quotas for major miners [2] Group 5: Medical Devices - GigaGen (02367) has increased over 8%, currently up 4.11%. The company recently announced that its "recombinant type I α1 collagen and sodium hyaluronate composite solution" has been approved as a medical device, marking a significant milestone as the first product of its kind for improving facial smoothness [2] Group 6: Semiconductor Sector - Semiconductor stocks are all declining, with Hua Hong Semiconductor (01347) down 5.91% and SMIC (00981) down 3.49%. This follows a significant drop in AMD's stock price by 17.31% after its fourth-quarter report indicated that while revenue exceeded expectations, the guidance for the first quarter was below market expectations [3] Group 7: Restaurant Sector - Restaurant stocks are performing well, with Yum China (09987) up 8.41% and Haidilao (06862) up 2.69%. The restaurant industry has shown signs of recovery, with retail sales in the sector growing by 3.8%, 3.2%, and 2.2% year-on-year in the last quarter of 2025, significantly outpacing overall retail growth [3] Group 8: Consumer Goods - Miniso (09896) has risen over 5.1% after announcing its partnership with the Central Radio and Television Station for the 2026 Spring Festival Gala. This collaboration is seen as a significant marketing move to elevate the brand's visibility in the mainstream market [4] Group 9: Gold Sector - Gold stocks are declining, with China Gold International (02099) down 6.8% and Zijin Mining (02899) down 6.29%. Recent volatility in the international gold market has been noted, with expectations that geopolitical tensions and liquidity easing by the Federal Reserve may drive gold prices higher [4] Group 10: Cryptocurrency - Cryptocurrency ETFs and related stocks are continuing to decline, with significant drops in prices, including Bitcoin falling below $72,000 for the first time in 15 months. The price has decreased by over 42% from its peak last October [5] Group 11: US Market Highlights - Boston Scientific (BSX.US) fell 17.59% after providing lower-than-expected guidance for fiscal year 2026. The company expects adjusted earnings per share to be between $3.43 and $3.49, slightly below analyst expectations [6] - Solar stocks surged, with Enphase Energy (ENPH.US) rising 38.6% following reports of interest from Elon Musk's teams in the Chinese solar supply chain [6]

Core Viewpoint - The AI sector remains promising, with significant growth potential and opportunities for investment despite recent volatility in stock prices [7][40][67]. Market Overview - The AI stocks experienced a sell-off similar to previous market declines, with the S&P 500 dropping approximately 15% during a recent period [8]. - The current market is characterized by confusion, with geopolitical events influencing investor behavior and leading to volatility in both tech and safe haven sectors [17][22]. AI Sector Insights - The global AI market is projected to grow from $539 billion in 2026 to over $3 trillion by 2033, driven by investments from major tech companies and increasing demand for data centers [40][42]. - Adoption of AI technologies is expanding across various sectors, including healthcare and manufacturing, indicating a long-term trend rather than a temporary phase [15][20]. Stock Recommendations - The top 10 AI stocks recommended show an average revenue growth rate of 38% and an EPS growth rate of 99%, significantly outperforming the S&P 500 and the Magnificent Seven stocks [66][67]. - Specific stocks highlighted include: - **Lumentum Holdings (LITE)**: Up 402% in the last year, with a long-term growth rate of 61% [70]. - **Micron Technology (MU)**: Up 387% in the last year, with a long-term growth rate of 51% [72]. - **Ciena (CIEN)**: Up 215% in the last year, with a long-term EPS growth CAGR of 44% [74]. - **General Motors (GM)**: Up 76% in the last year, utilizing AI for enhanced vehicle connectivity [79]. - **Taiwan Semiconductor Manufacturing (TSM)**: Up 71% in the last year, with strong growth metrics [80]. - **Credo Technology (CRDO)**: Despite recent declines, it has strong growth potential with a forward EPS growth rate of 248% [97]. - **AppLovin (APP)**: Up almost 1000% within Alpha Picks, with a long-term growth rate of 48% [98]. - **Globus Medical (GMED)**: In the healthcare sector, showing strong growth metrics [100]. Investment Strategy - The strategy emphasizes buying on dips, particularly for stocks with strong fundamentals that have recently experienced price declines [35][106]. - The quant model used for stock selection focuses on multiple factors, including growth, value, and profitability, ensuring a diversified approach to investment [51][60].

Investors might want to bet on Lumentum (LITE) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual inves ...

Key Takeaways LITE beat Q2 estimates as earnings rose 297.6% Y/Y and revenues climbed 65.5%, driven by strong demand. Lumentum saw component revenues jump 68.3% Y/Y to $443.7M,making up nearly two-thirds of total quarterly salesLITE's non-GAAP operating margin expanded 1730 bps Y/Y to 25.2%, reflecting improved cost structure and scale.Lumentum (LITE) reported second-quarter fiscal 2026 non-GAAP earnings of $1.67 per share, which beat the Zacks Consensus Estimate by 18.68%. The company reported non-GAAP ear ...

Market Overview - The market has experienced significant volatility, with geopolitical events and economic uncertainties contributing to fluctuations. January saw a rotation between safe haven stocks and technology stocks, with commodities initially rising before pulling back [8][9][12]. - The AI sector is facing challenges, with fears of overvaluation leading to sell-offs, particularly among major technology stocks. The Nasdaq index was down nearly 2% at one point, driven by concerns surrounding NVIDIA and other AI-related investments [10][24]. AI Market Insights - The global AI market is projected to reach $3 trillion by 2033, driven by the demand for AI infrastructure and the rapid adoption of AI technologies. ChatGPT has seen a surge in active users, growing from 200 million to over 1 billion in just two years [16][17]. - AI stocks have outperformed traditional sectors, with chipmakers and technology firms leading the way. The demand for AI infrastructure has outpaced supply, particularly for memory chips [22][37]. Top AI Stocks for 2026 - The top 10 AI stocks identified have a forward revenue growth rate of 38% and a forward EPS growth rate of 99%, significantly outperforming the S&P 500's growth rates of 6% and 10.6% respectively [39]. - The stocks were selected from major AI-focused ETFs and analyzed using a quantitative model to identify strong performers based on various metrics [36][37]. Individual Stock Highlights - **Lumentum Holdings (LITE)**: Market cap of $27 billion, ranked 1st in its sector. The stock has increased by 402% over the past year, with strong growth metrics [41][43]. - **Micron Technology (MU)**: Market cap of $466 billion, ranked 1st in the semiconductor industry. The stock is up 387% over the past year, with a forward EPS growth rate of 222% [46][52]. - **Ciena (CIEN)**: Market cap of $35 billion, ranked 2nd in communications equipment. The company has a long-term growth rate of 44% [54][55]. - **General Motors (GM)**: Market cap of $1.46 trillion, recognized for its integration of AI in automotive technology. The stock is up 76% over the past year [57][59]. - **Taiwan Semiconductor (TSM)**: Market cap of $1.46 trillion, ranked 2nd in semiconductors. The company has a long-term EPS growth rate of 30% [60][61]. - **Hut 8 Corp (HUT)**: Market cap of $6 billion, ranked 1st in application software. The stock has returned 160% over the past year [62][63]. - **Celestica (CLS)**: Market cap of $32 billion, ranked 2nd in electronic manufacturing services. The stock is up 136% over the past year [64][66]. - **Credo Technology Holding (CRDO)**: Ranked 4th in semiconductors, with a long-term EPS growth rate of 69% [70][71]. - **AppLovin Corporation (APP)**: Despite a rocky year, the stock is up 31% and has strong growth metrics [72][74]. - **Globus Medical (GMED)**: Market cap of $12 billion, focused on AI and robotics in healthcare. The stock is up 68% over the past six months [78][80].

对于2026财年第三季度，Lumentum预计，调整后每股收益将介于2.15美元至2.35美元之间，显著高于分 析师平均预期的1.59美元。该公司预计第三季度营收将介于7.8亿美元至8.3亿美元之间，预测区间中值 为8.05亿美元，同样远高于分析师平均预期的7.07亿美元。 智通财经APP获悉，周三，Lumentum(LITE.US)盘前涨近10%，料开盘续创历史新高，现报476.52美 元。消息面上，该公司在截至去年12月27日的第二季度实现营收6.65亿美元，同比大幅增长65%，高于 分析师平均预期的6.52亿美元。GAAP每股收益为0.89美元，显著高于分析师平均预期的0.49美元;调整 后的每股收益为1.67美元，同样高于分析师平均预期的1.41美元。 Lumentum首席执行官迈克尔·赫尔斯顿表示："我们的前瞻指引显示营收同比增长将超过85%，但我们目 前才刚刚站在两大重要机遇的起跑线上——光路开关(OCS)和共封装光器件(CPO)。在OCS领域，我们 正在快速扩张以满足客户的巨大需求，目前我们的积压订单已超过4亿美元。在CPO领域，我们新增了 一份价值数亿美元的订单，预计将于2027年上半年交付。 ...