Jim Cramer on Lumentum: “We’ll Play With the House’s Money”

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the stocks on Jim Cramer’s radar. A caller, who took a position in the stock years ago after a positive impression from its appearance on the show, asked whether to hold or sell now that the stock has recently surged after years of stagnation. Cramer replied:

“No, no, we’re going to sell half on Monday morning. Half, okay? Then we’ll play with the house’s money, and we’ll be incredibly happy, even happier than we are now.”

Lumentum Holdings Inc. (NASDAQ:LITE) produces optical and photonic products, including chips, components, and lasers, which support cloud data centers, AI infrastructure, and various manufacturing sectors such as semiconductors, solar cells, and electric vehicle batteries. 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.”

While we acknowledge the risk and potential of LITE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LITE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.