Lumentum Holdings (NASDAQ:LITE) has become a critical supplier in the optical communications market, driven by AI workloads. The company commands over 50% market share in Optical Indium Phosphide lasers.
Revenue grew 69% over the last twelve months. Analysts project laser revenue to double to $2.2 billion by fiscal 2028.
An exclusive partnership with NVIDIA makes Lumentum the sole supplier of Co-Packaged Optics for NVIDIA's switch platforms, validating its technical leadership.
However, risks include high customer concentration and competition from Chinese manufacturers. The stock trades at a high P/E ratio of 180.
Bond.az analysis shows Lumentum is well-positioned for long-term growth despite near-term valuation concerns.
