5 Best Stocks to Buy for the Second Half of 2026

4. Lumentum Holdings Inc. (NASDAQ:LITE)

Number of Hedge Fund Holders: 123

Year-to-date return: 107.50%

On June 9, in a new episode of “The Rundown,” Lumentum Holdings Inc. (NASDAQ:LITE)  CEO Michael Hurlston said the company has benefited from the rapid shift from copper to fiber optics inside AI data centers. He explained that higher bandwidth demands have pushed connectivity speeds from 400 Gbps to 800 Gbps and now 1.6 Tbps.

Hurlston called Lumentum Holdings Inc. (NASDAQ:LITE)’s laser technology “arguably second to none.” He also said it’s decades of experience have positioned the California-based technology firm for the AI infrastructure buildout.

Hurlston said demand is not the constraint, but “supply is.” He pointed out that new fabrication facilities take about two years to reach production, prompting capacity planning through 2028-2030. He also said Nvidia’s multiyear purchase commitment reflected concerns over indium phosphide laser supply as the industry shifts to fiber.

Looking ahead, Hurlston said he sees “no end in sight” over the next five years. He underlined co-packaged optics and growing fiber use as important long-term growth drivers.

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