Lumentum Holdings (LITE) Climbs 19% on Strong Earnings, Bullish Rating

We recently published 10 Stocks Soaring Past Expectations. Lumentum Holdings Inc. (NASDAQ:LITE) is one of the big names that led last week’s charge.

Lumentum Holdings soared by 19.12 percent week-on-week, as investors gobbled up shares following an improved earnings performance in the first quarter of fiscal year 2026 alongside an analyst’s bullish coverage for its stock.

During the period, Lumentum Holdings Inc. (NASDAQ:LITE) swung to a net income of $4.2 million from a $82.4 million net loss in the same period last year. Net revenues jumped by 58.4 percent to $533.8 million from $336.9 million year-on-year.

Lumentum Holdings (LITE) Climbs 19% on Strong Earnings, Bullish Rating

“Our first-quarter results and forward guidance underscore our strong momentum across data center, data center interconnect, and long-haul markets,” said Lumentum Holdings Inc. (NASDAQ:LITE) President and CEO Michael Hurlston.

Encouraged by the results, the company further raised its net revenue outlook for the second quarter to a range of $630 million to $670 million, with diluted earnings per share of $1.30 to $1.50.

In other news, Lumentum Holdings Inc. (NASDAQ:LITE) received a 60 percent price target upgrade from Wolfe Research, alongside an “outperform” rating, on expectations that its indium phosphide laser solutions would highly benefit from the rapid development of the artificial intelligence industry.

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.