Latest news with #Lumentum
Yahoo
2 days ago
- Business
- Yahoo
Buy 3 AI Infrastructure Stocks Backed by Past Month's Solid Momentum
The artificial intelligence (AI) infrastructure space recently gathered steam, with the DeepSeek-related fears turning out to be overblown. Moreover, chances of a trade deal between the United States and its major trading partners, the Fed's indication of two rate cuts of 25 basis points each this year and the evaporation of recession worries in the U.S. economy have boosted market participants confidence. At this stage, we have narrowed our search to three AI infrastructure stocks that have that have surged in the past month with more than 10% returns. Each of these stocks currently sports a Zacks Rank #1 (Strong Buy), indicating solid upside momentum in the near term. You can see the complete list of today's Zacks #1 Rank stocks here. These stocks are: Credo Technology Group Holding Ltd. CRDO, Jabil Inc. JBL and Lumentum Holdings Inc. LITE. AI Frenzy Flourishing The AI space remains rock solid supported by an extremely bullish demand scenario. Four of the 'magnificent 7' stocks have decided to invest a massive $325 billion in 2025 as capital expenditure for AI-infrastructure development. This marks a significant 46% year-over-year increase in capital spending on the AI ecosystem. This huge spending on AI infrastructure will dramatically change the world over the next five years in fields such as hyperscale automation, robotics, healthcare, energy, materials, financials and cybersecurity. Research firm Oppenheimer estimated that the total addressable global sovereign AI market could be a massive $1.5 trillion. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Credo Technology Group Holding Ltd. Credo Technology is a provider of high-performance serial connectivity solutions for the hyperscale datacenter, 5G carrier, enterprise networking, artificial intelligence and high-performance computing markets. CRDO's main business is its Active Electrical Cables (AEC) product line. AEC is gaining traction owing to its increasing adoption in the data center market. The demand for AECs is increasing as ZeroFlap AECs offer more than 100 times improved reliability than laser-based optical solutions. This made AECs an increasingly attractive option for data center applications. With the demonstration of PCIe Gen6 AECs and increasing hyperscaler interest, this product line is expected to remain a growth engine. Strength in the optical business, particularly Optical Digital Signal Processors (DSPs), is another key catalyst. CRDO expects an expansion of customer diversity across lane rates, port speeds and applications to accelerate revenue growth going forward. CRDO announced that it achieved a key 800-gig transceiver DSP design win and unveiled ultra-low-power 100 gig-per-lane optical DSPs built on 5-nanometer technology. CRDO expects its 3-nanometer 200 gig-per-lane optical DSP to boost the industry's transition to 200-gig lane speeds. Supplementing these businesses is CRDO's PCIe retimers and Ethernet retimers business. This particular product line continues to witness customer interest, especially for scale-out networks in AI servers. CRDO highlighted that the retimer business delivered 'robust' performance driven by 50 gig and 100 gig per lane Ethernet solutions. This growing demand underscores the increasing importance of high-performance solutions in the rapidly expanding AI server market. Shift to 100 gig per lane solutions and higher demand for system-level expertise and software capabilities for dealing with AI-optimized architectures bode well for CRDO's retimer business. Credo Technology has an expected revenue and earnings growth rate of 85.8% and more than 100%, respectively, for the current year (ending April 2026). The Zacks Consensus Estimate for current-year earnings has improved 37% in the last 60 days. Jabil Inc. Jabil has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil's target that 'no product or product family should be greater than 5% operating income or cash flows in any fiscal year' is commendable. JBL's high free cash flow indicates efficient financial management practices, optimum utilization of assets, and improved operational efficiency. Massive application of generative AI is set to drastically increase the efficiency of JBL's automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption. Jabil has an expected revenue and earnings growth rate of 5.6% and 17.8%, respectively, for next year (ending August 2026). The Zacks Consensus Estimate for next-year earnings has improved 8.4% over the last 30 days. Lumentum Holdings Inc. Lumentum Holdings designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of artificial intelligence, cloud computing, 5G connectivity, and beyond. LITE's industrial lasers are used in precision manufacturing, such as cutting semiconductors and solar cells. LITE also develops 3D sensing laser diodes for applications like facial recognition in smartphones and autonomous vehicle sensors. Shares of Lumentum have gathered momentum in the past three months boosted by growing AI demand. LITE is developing and providing photonic solutions for AI applications, particularly for data centers. LITE's major AI-enabled offerings are high-speed transceivers, optical circuit switches, and lasers that enable faster, more efficient, and scalable AI infrastructure. Moreover, LITE has a strong collaboration with NVIDIA Corp. NVDA in developing NVDA's silicon photonics ecosystem, especially for deploying the latter's Spectrum-X Photonics networking switches. Lumentum Holdings has an expected revenue and earnings growth rate of 32,8% and more than 100%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Jabil, Inc. (JBL) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
5 days ago
- Business
- Globe and Mail
Lumentum Announces Reporting Date for Fourth Quarter and Fiscal Year 2025 Results
Lumentum Holdings Inc. ("Lumentum") today announced that it will release its fiscal fourth quarter and full year 2025 financial results on Tuesday, August 12, 2025, after the market closes. Lumentum will hold a conference call the same day at 2:00 p.m. PT/5:00 p.m. ET. A live webcast of the call and the replay will be available in the Investors section of the Lumentum website at To participate via telephone: Dial-In: (833) 470-1428 or (404) 975-4839 Conference ID: 554196 The Company recommends participants dial in at least 10 minutes before the scheduled start to minimize potential delays in joining the call. Lumentum also encourages those who plan to dial into the conference call to pre-register: pre-registration link. Callers who pre-register will be given a unique dial-in number and PIN via email to gain immediate access to the call. The earnings press release will be posted at under the "Financial News Releases" section. Additional materials supporting the conference call and earnings release will be posted under the "Events and Presentations" section. About Lumentum Lumentum (NASDAQ: LITE) is a market-leading designer and manufacturer of innovative optical and photonic products enabling cloud, optical networking, and laser applications worldwide. Lumentum optical components and subsystems are part of virtually every type of data center, telecom, and enterprise network. Lumentum lasers enable advanced manufacturing techniques and diverse applications including next-generation 3D sensing capabilities. Lumentum is headquartered in San Jose, California with R&D, manufacturing, and sales offices worldwide. For more information, visit and follow Lumentum on Bluesky, Facebook, Instagram, LinkedIn, X, and YouTube.
Business Wire
5 days ago
- Business
- Business Wire
Lumentum Announces Reporting Date for Fourth Quarter and Fiscal Year 2025 Results
SAN JOSE, Calif.--(BUSINESS WIRE)--Lumentum Holdings Inc. ("Lumentum") today announced that it will release its fiscal fourth quarter and full year 2025 financial results on Tuesday, August 12, 2025, after the market closes. Lumentum will hold a conference call the same day at 2:00 p.m. PT/5:00 p.m. ET. A live webcast of the call and the replay will be available in the Investors section of the Lumentum website at To participate via telephone: Dial-In: (833) 470-1428 or (404) 975-4839 Conference ID: 554196 The Company recommends participants dial in at least 10 minutes before the scheduled start to minimize potential delays in joining the call. Lumentum also encourages those who plan to dial into the conference call to pre-register: pre-registration link. Callers who pre-register will be given a unique dial-in number and PIN via email to gain immediate access to the call. The earnings press release will be posted at under the "Financial News Releases" section. Additional materials supporting the conference call and earnings release will be posted under the "Events and Presentations" section. About Lumentum Lumentum (NASDAQ: LITE) is a market-leading designer and manufacturer of innovative optical and photonic products enabling cloud, optical networking, and laser applications worldwide. Lumentum optical components and subsystems are part of virtually every type of data center, telecom, and enterprise network. Lumentum lasers enable advanced manufacturing techniques and diverse applications including next-generation 3D sensing capabilities. Lumentum is headquartered in San Jose, California with R&D, manufacturing, and sales offices worldwide. For more information, visit and follow Lumentum on Bluesky, Facebook, Instagram, LinkedIn, X, and YouTube. Category: Financial
Yahoo
12-07-2025
- Business
- Yahoo
2 Top Tech Stocks to Buy Before they Soar in the Second Half
Wall Street shook off the wave of trade war and tariff updates and pushed the Nasdaq to new all-time highs on Wednesday. The upbeat day might signal that investors are learning lessons from the initial trade war fears, betting that Trump and his administration likely do not want to crush the U.S. economy or the stock market. Investors could still take profits on high-flying tech stocks heading into Q2 earnings season. Thankfully, the bulls should remain in charge as long as AI and tech-boosted earnings growth holds up. Plus, the Fed is still projected to cut interest rates again in 2025. Now might be a good time for investors to start buying tech stocks that are trading well below their all-time highs before they possibly surge in July and beyond. Lumentum LITE designs and manufactures optical and photonic technologies for high-speed telecommunications, data centers, and advanced manufacturing. LITE provides components, such as transceivers and lasers for fiber-optic networks, supporting the rapid growth of artificial intelligence, cloud computing, 5G connectivity, and beyond. Its industrial lasers are used in precision manufacturing, such as cutting semiconductors and solar cells. Lumentum also develops 3D sensing laser diodes for applications like facial recognition in smartphones and autonomous vehicle sensors. Despite this backdrop, Lumentum stock only climbed 10% in the past five years while the Tech sector soared 110%. Image Source: Zacks Investment Research Lumentum's revenue growth plateaued after 2019, driven by multiple headwinds. LITE announced in May 2019 that it had discontinued all shipments to Huawei after the U.S. government forced tech companies to stop supplying the Chinese smartphone maker due to national security concerns. Wall Street also grew worried about Lumentum's overreliance on Apple for its growth in a slowing iPhone market. On top of that, Covid-based inventory corrections, macroeconomic pressures such as inflation, and trade restrictions dragged LITE down over the past several years. Thankfully for investors, Lumentum is turning the corner, boosted by surging AI demand. Lumentum crushed our EPS estimate by an average of 42% in the trailing four quarters, including a big beat-and-raise Q3 FY25 in early May. Its upbeat earnings revisions land LITE a Zacks Rank #1 (Strong Buy). Image Source: Zacks Investment Research Lumentum's next-generation optics are helping create energy-efficient AI networks, which is critical in the power-hungry AI space. New CEO Michael Hurlston, who took over in February, said LITE's innovations are 'driving transformative power efficiencies across cloud, AI, and long-haul networks, making us an essential partner in this next era of connectivity.' LITE is projected to grow its revenue by 20% in FY25 and 33% next year to surge from $1.36 billion in FY24 to $2.17 billion in FY26, crushing its previous peaks. Better yet, the tech innovator is projected to double its adjusted EPS in FY25 (+95%) and FY26 (+111%) to reach $4.16 a share. Some of Lumentum's growth is driven by its late-2023 acquisition of Cloud Light Technology. Image Source: Zacks Investment Research Lumentum shares have kept pace with Tech over the past decade despite its huge underperformance over the last five years. The stock is neck and neck with Tech in 2025 and up 60% in the past year to crush its sector's 8% run. LITE completed a long-term golden cross, where its 50-week moving average overtook its 200-week, in May. A strong earnings report could help it finally break out above its 2021 peaks after several failed attempts. Lumentum stock also trades at a 40% discount to Tech on the price/earnings to growth ratio front. Customer relationship management standout HubSpot HUBS posted blockbuster growth over the last decade as companies big and small race to digitalize every pocket of their businesses. HUBS stock has roughly tripled the Tech sector during that stretch, fueled by massive growth that took it from $182 million in 2015 revenue to $2.6 billion last year. Despite outrunning Tech in the last three and five-year stretches, HUBS trades 30% below its highs even as the Tech sector ripped to fresh records to close the first half. HubSpot stock cooled on the back of slowing sales growth compared to its days of 30% to 50% expansion and its inability to consistently post profits. Yet, HubSpot could be ready to break out and return to all-time highs given its robust adjusted earnings and revenue growth outlook. Image Source: Zacks Investment Research HubSpot's solutions are designed to help its clients attract customers, build relationships, and keep them happy. The business software company launched its Breeze artificial intelligence platform last year, integrating HubSpot's AI tools throughout its entire CRM platform. Its AI-powered customer platform helps businesses grow by managing marketing, sales, customer service, content, operations, and beyond more efficiently than ever before. Image Source: Zacks Investment Research The Cambridge, Massachusetts-based company is projected to expand its revenue by roughly 16% in 2025 and 2026 to reach $3.51 billion, adding nearly $1 billion to its top line vs. 2024. It is expected to grow its adjusted earnings by 15% and 21%, respectively. HUBS has beaten our quarterly earnings estimates for five years in a row, and its recent upward earnings revisions earn it a Zacks Rank #1 (Strong Buy). HubSpot trades 30% below its 2021 highs after getting firmly rejected at those levels in February. HUBS stock is trading right near its 21-day moving average, and it's held its ground at or near its long-term 200-week moving average several times in the past year. The 200-week moving average was one of Warren Buffett's longtime right-hand man, Charlie Munger's, favorite technical indicators for buying long-term stocks. Image Source: Zacks Investment Research It might be worth taking a chance on HubSpot for near-term upside to its peaks and long-term AI-boosted growth. Plus, the company's robust balance sheet is helping it buy back stock. Wall Street is also still very high on the stock, with 26 of the 33 brokerage recommendations Zacks has at 'Strong Buys.' Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
11-07-2025
- Business
- Yahoo
This Underrated Artificial Intelligence (AI) Stock Is Crushing the Market, and It Could Skyrocket Higher
Surging demand for optical components in AI data centers has helped Lumentum record solid growth. Analysts expect Lumentum to maintain healthy growth levels over the next couple of years. Despite the stock's strong recent gains, it continues to trade at an attractive valuation. 10 stocks we like better than Lumentum › The tech-heavy Nasdaq Composite index has been in turnaround mode for the past three months -- up an impressive 31% over that span after a rocky start to the year. That's not surprising, as strong quarterly results from major technology companies seem to have boosted investor confidence in the sector. Lumentum Holdings (NASDAQ: LITE) has been one of the beneficiaries of the tech stock rally. Shares of the company, which sells optical and photonic products that go into data centers and telecom networks to enable fast data transmission, have shot up by an impressive 75% in the past three months, putting them back within 10% of the peak they reached in January. The good part is that Lumentum's rebound wasn't just a function of the broader market's rally, but also because of the company's healthy growth, which is being powered by its customers' increasing investments in artificial intelligence (AI) infrastructure. Better still, this stock is likely to deliver more upside to investors. Lumentum is witnessing terrific demand for its externally modulated lasers (EMLs), which are widely deployed in high-speed optical communications applications such as data centers and telecom networks. Their ability to transmit data over long distances at high speeds makes them ideal for deployment in AI data centers. On Lumentum's May earnings call, CEO Michael Hurlston noted: "We set another record for EML chip set shipments this quarter and remain on track to more than double this business by the end of calendar 2025." At the same time, the company is going to further expand its production capacity of EMLs in an effort to meet the end-market demand. That's the smart thing to do, considering that according to market research firm LightCounting, the optical transceiver market is expected to generate $10 billion in revenue in 2026 -- as compared to $5 billion in 2024 -- before rising to $20 billion in 2030. The company's revenue in its fiscal 2025 third quarter increased by 16% year over year to $425.2 million. Its adjusted earnings per share jumped by more than 500% -- from $0.09 to $0.57 -- on the back of an improvement in manufacturing utilization rates as well as the higher margins of its laser components deployed in AI servers. Analysts' consensus estimates are for a 20% increase in Lumentum's revenue this year to $1.6 billion. Importantly, its top-line growth is expected to remain solid next year as well, thanks to the improving demand for AI-focused optical components. Even better, that top-line growth is expected to filter down to the bottom line as well. The analysts are forecasting a 94% increase in earnings in the current fiscal year to $1.96 per share. That won't be surprising when we take into account the margin gains that its laser components deployed in AI data centers are delivering. What's worth noting is that Lumentum is trading at an incredibly attractive valuation despite the impressive growth that it has been clocking. It has a forward earnings multiple of 24, which is lower than the tech-laden Nasdaq-100 index's average forward price-to-earnings ratio of 29. Even assuming Lumentum continues to trade at a discount to the broader index after a couple of years, if it delivers the healthy earnings growth that analysts are anticipating, its stock could fly higher. Based on a P/E ratio of 24, its projected earnings of $5.21 per share in its fiscal 2027 point toward a stock price of $125. That would be 37% above the current level. However, don't be surprised to see this AI stock jumping higher than that, as the market could reward it with a premium multiple thanks to its strong earnings growth. That's why even after its impressive rebound over the past three months, investors should consider buying Lumentum before it possibly flies even higher. Before you buy stock in Lumentum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lumentum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool recommends Lumentum. The Motley Fool has a disclosure policy. This Underrated Artificial Intelligence (AI) Stock Is Crushing the Market, and It Could Skyrocket Higher was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
