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Lumentum (LITE) Orders New Equipment and Plans a 240,000-Square-Foot AI Laser Facility in North Carolina

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best optical networking stocks to buy according to analysts. On May 19, AIXTRON SE announced that Lumentum Holdings Inc. (NASDAQ:LITE) had placed multiple orders for AIXTRON’s G10-AsP MOCVD systems. These are manufacturing equipment that Lumentum will use to scale up production of indium phosphide (InP)-based lasers and detectors for high-speed AI data center networks.

For context, InP-based lasers are the core components inside the optical transceivers that connect thousands of AI accelerator chips within data centers. Unlike older optical generations, these new lasers can handle massive bandwidth, which makes them ideal for AI model training and inference workloads. Lumentum supplies these components to some of the world’s largest hyperscalers.

The G10-AsP platform Lumentum ordered is AIXTRON’s latest MOCVD system. It is designed specifically for compound semiconductor materials like InP, and it gives Lumentum the ability to manufacture more chips per run with greater precision.

This order appears to be part of Lumentum’s capacity expansion push because on March 26, it announced plans for a new 240,000-square-foot manufacturing facility in Greensboro, North Carolina. Lumentum said it plans to use the facility to produce InP-based optical products. The company expects that facility to start operating in mid-2028, and it has committed several hundred million dollars to it.

Lumentum Holdings Inc. (NASDAQ:LITE) is an optical networking and photonics company. It designs and manufactures high-performance optical and laser-based components used in fiber-optic communication systems.

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.

READ NEXT: 10 Most Buzzing AI Semiconductor Stocks to Buy in 2026 and 11 Best Medical Technology Stocks to Buy Right Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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