Lumentum Holdings (NASDAQ: LITE) has seen a remarkable 452% increase in stock value over the past year, driven by strong demand for its optical networking products amid a booming AI infrastructure market. The company reported $3 billion in revenue for fiscal 2026, with expectations for further growth as the optical networking total addressable market is projected to surge from $15 billion in 2026 to $154 billion in 2028, according to Goldman Sachs.
Lumentum’s earnings per share (EPS) quadrupled to $8.67 in fiscal 2026, and projections suggest that EPS could reach $47.44 by fiscal 2029, representing a potential stock price of $1,613. This demand is fueled by hyperscalers and AI companies, which have over $3 trillion in purchase commitments, leading to anticipated investments in AI data centers increasing from $800 billion in 2026 to $1.8 trillion annually by 2050.
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