Jim Cramer Notes NVIDIA’s Investment in Lumentum and Coherent and Highlights the “Better Performer”

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the stocks Jim Cramer evaluated, along with the fragile food market. Cramer noted that the company is a better performer than Coherent, as he said:

If you’re looking for groups to buy into weakness as rising oil prices crush the stock market, you can do a lot worse than the data center suppliers. Later this month, two optical companies are joining the S&P 500: Coherent, which we spoke to earlier this week, and Lumentum. Now, both of them are getting $2 billion investment from NVIDIA, but Lumentum’s been the better performer. It’s up nearly 900% over the past 12 months, despite an 8% decline today as part of that broader tech-led sell-off.

Stock market data. Photo by Burak The Weekender on Pexels

Lumentum Holdings Inc. (NASDAQ:LITE) designs and sells optical and photonic products, including lasers and components, for cloud networking, data centers, and industrial applications. Cramer mentioned the stock during the March 9 episode and commented:

Next, a week ago, we learned that NVIDIA was investing $2 billion apiece in a pair of fiber optic plays, Coherent and Lumentum. They both have a lot of exposure to AI infrastructure. Apparently, S&P and NVIDIA have the same style because both those stocks are getting added to the S&P 500… Lumentum is similar, except that stock has been even hotter. It’s up more than 1,300% from its post-Liberation Day lows. The stock’s a lot more expensive than Coherent on a price-to-earnings basis, higher risk, higher reward. But they’re both plays on optical networking equipment for the data center.

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