5 Best Photonics Stocks to Buy Now

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1. Lumentum Holdings Inc. (NASDAQ:LITE)

On April 10, 2026, Bloomberg reported that Lumentum Holdings Inc. (NASDAQ:LITE)’ demand for optical components is on the rise, with orders projected to fill capacity through 2028, citing Chief Executive Michael Hurlston. Hurlston stated that “the capex numbers from the U.S. hyperscalers are enormous” and that the firm is “falling further and further behind the demand,” forecasting that it will be sold out by 2028 within two quarters. He extended his guidance on being sold out until 2027.

The CEO said that Lumentum Holdings Inc. (NASDAQ:LITE) is looking into investing at least $100 million in its Tokyo-area factory and an adjacent site for more output. He noted that the sum could increase much higher, saying, “We could see it probably going up to even a quarter billion.”

Hurlston also said that capacity expansion is constrained, noting client demand for near-term output. He added that long-term demand appears to be sustainable for at least five years.

Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products. It works in the Cloud and Networking, and Industrial Tech segments.

While we acknowledge the potential of LITE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LITE and that has 100x upside potential, check out our report about the cheapest AI stock.

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