JPMorgan Points Out Lumentum Holdings’ (LITE) “Scale-Across” and “Multi-Rail” Opportunities

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]