5 Best Performing Blue Chip Stocks to Buy

2. Lumentum Holdings Inc. (NASDAQ:LITE)

6-Month Performance: 414.87%

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best-performing blue chip stocks to buy. On March 23, BNP Paribas increased its price target for Lumentum Holdings Inc. (NASDAQ:LITE) from $625 to $1,040 while keeping an Outperform rating. The research firm lifted its EPS estimates for the company. BNP Paribas now forecasts EPS of $25.89 in 2027 and $38.95 in 2028.

Additionally, on March 19, B. Riley said that it is “incrementally positive” on Lumentum Holdings Inc. (NASDAQ:LITE) after the company’s “impressive” presentations at the Optical Fiber Communication Conference. B. Riley has a Buy rating on the stock.

At the Conference, Lumentum Holdings Inc. (NASDAQ:LITE) showcased its technology and product demonstrations designed to meet the growing demands of next-generation AI and data center infrastructure.

Earlier, on March 18, Rosenblatt also reaffirmed its Buy rating on Lumentum Holdings Inc. (NASDAQ:LITE) with a price target of $900. The research firm pointed to the company’s position in AI optical technology and its growth potential through 2030.

Rosenblatt added that Lumentum Holdings Inc.’s (NASDAQ:LITE) focus on lasers positions it well to achieve margins similar to semiconductor companies. The firm also said that the company is making a case for $35 to $50 in EPS in fiscal 2028, with continued growth in fiscal 2029.

Lumentum Holdings Inc. (NASDAQ:LITE) designs and manufactures innovative optical and photonic products and technologies that power the networks and infrastructure behind AI, cloud computing, and next-generation communications.