Lumentum (LITE) Gets 8% Boost on Earnings Report

We recently published 10 Big Names Already Crushing This February. Lumentum Holdings Inc. (NASDAQ:LITE) was one of the top performers on Monday.

Lumentum Holdings rallied for a second day on Monday, jumping 8.06 percent to close at $423.42 apiece as investors loaded portfolios ahead of its earnings outcome which came out shortly after market close.

Earlier, Lumentum Holdings Inc. (NASDAQ:LITE) announced expectations of $630 million to $670 million in net revenues, as well as $1.30 to $1.50 diluted earnings per share for the second quarter ending December 31.

Prior to the results, Lumentum Holdings Inc. (NASDAQ:LITE) on Friday received a 15 percent price target upgrade from Morgan Stanley, at $350 versus $304 previously. However, it maintained an “equal weight” rating for its stock.

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Apart from Morgan Stanley, Lumentum Holdings Inc. (NASDAQ:LITE) also received higher price targets from investment companies Citigroup and Stifel.

Citigroup, for its part, upgraded the stock by 87 percent to $450 from $240, while maintaining its “buy” recommendation.

Stifel, on the other hand, issued a $400 price target, double the $200 it targeted earlier, while reaffirming a “buy” issuance, on expectations that agentic AI and reasoning networks would lead to a step-function increase in networking intensity.

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.