Introduction
Lumentum still remains as a strong pick in its industry because of its consistent exposure to AI growth, strong revenue and momentum.
Opportunity in the AI Industry
Lumentum makes advanced optical and photonic components like lasers, transceiver modules and other components that powers AI high-speed data transmission inside and between data centers. It now is a fundamental part of cloud infrastructure and AI workloads. Hyperscale cloud providers and AI clusters like Amazon AWS, Microsoft Azure, Google Cloud need huge increases in bandwidth and interconnect speeds to handle large-scale AI training and inference. Optical networking gear like Lumentum’s is critical for that. So if AI and cloud infrastructure keep expanding, demand for Lumentum’s products is tied to that growth
Revenue Growth and Operational Momentum
Recently Lumentum has had very strong financials. The company has an significant year over year growth. In the first quarter of fiscal 2026, Lumentum reported revenue of $533.8 million, up ~58 % year-over-year, a very strong increase for a company of this size. Most recent earnings reports showed results exceeding guidance or analyst forecasts, and management raised future revenue targets. This reflects both demand strength and execution capability.
Conclusion
In conclusion Lumentum is a very strong company that I would strongly recommend buying right now because its has the tailwind from the AI industry and also very strong fundamentals with a incredible revenue growth.
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