Jim Cramer on Lumentum: “It’s Okay as Long as You Recognize It’s a Spec”

Company Overview - Lumentum Holdings Inc. (NASDAQ:LITE) specializes in optical and photonic products, including chips, components, and lasers, which are essential for cloud data centers, AI infrastructure, and various manufacturing sectors such as semiconductors, solar cells, and electric vehicle batteries [2]. Investment Insights - Jim Cramer highlighted Lumentum as a "red-hot spec stock" that is profitable, suggesting it is acceptable to invest in it as long as investors recognize its speculative nature [1]. - Cramer advised a caller to sell half of their Lumentum shares, indicating a strategy to secure profits while still maintaining a position in the stock [2]. - There is a belief that certain AI stocks may offer greater upside potential and carry less downside risk compared to Lumentum, suggesting a competitive landscape for investment opportunities [2].