10 Best High Short Interest Stocks to Buy Now

5. Lumentum Holdings Inc. (NASDAQ:LITE)

Short % of Float As of April 16: 20.06%

Number of Hedge Fund Holders: 57

Lumentum Holdings Inc. (NASDAQ:LITE) manufactures and sells optical and photonic products. It operates through two segments: Cloud & Networking and Industrial Tech. It serves customers in semiconductor device, solar cell, display, EV, and battery manufacturing markets, along with broader materials processing and precision micromachining end-markets.

In FQ2 2025, the company’s Cloud and Networking segment generated $339.2 million in revenue, which was up 20% sequentially and 18% year-over-year. This segment is expanding because of a booming cloud market. Lumentum Holdings Inc.’s (NASDAQ:LITE) photonics innovations are essential for the high-speed, low-latency, and energy-efficient data transmission which is required in modern data centers, especially for AI applications.

Lumentum is a leader in Electro-absorption Modulated Lasers (EMLs), and in Q2, it achieved a record in EML unit shipments and began delivering new and more efficient 200G lane speed EMLs to multiple customers. This positions it to gain market share in next-gen 800G and 1.6T transceivers. On March 24, Raymond James analyst Simon Leopold upgraded the stock’s rating from Outperform to Strong Buy, while lowering its price target to $82 from $96.

Invesco Small Cap Value Fund stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its Q4 2024 investor letter:

“Lumentum Holdings Inc. (NASDAQ:LITE): The telecommunications equipment maker reported better-than expected revenue and earnings for its recent quarter, along with record orders for its data communications laser chips used in data center applications.”