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Lumentum Holdings Inc. (NASDAQ:LITE) is among the 12 Best Performing Stocks in February.

Rosenblatt is Bullish on Lumentum Holdings Inc. (LITE)

On March 3, 2026, Rosenblatt analyst Mike Genovese increased the price objective for Lumentum Holdings Inc. (NASDAQ:LITE) from $580 to $900 while maintaining a Buy rating. Rosenblatt predicted higher earnings after NVIDIA decided to invest $2 billion in the company and make multibillion-dollar purchase agreements to secure future capacity availability for complex lasers and optical components. The analyst linked the deals to the demand for co-packaged optics that support next-generation computing systems.

On March 2, 2026, NVIDIA and Lumentum Holdings Inc. (NASDAQ:LITE) announced multiyear strategic agreements to improve optics technology for AI infrastructure. NVIDIA made multibillion-dollar purchases and invested $2 billion to assist R&D, capacity growth, and operations related to U.S. manufacturing. NVIDIA CEO Jensen Huang noted that AI is driving a significant computing infrastructure buildout. Lumentum Holdings Inc. (NASDAQ:LITE) CEO Michael Hurlston said that the deal boosts collaboration on optics technologies and promotes the development of a new fabrication facility to improve production capacity and speed innovation for AI data centers.

Lumentum Holdings Inc. (NASDAQ:LITE) offers optical and photonic products. It works in the Cloud and Networking and Industrial Tech areas.

While we acknowledge the potential of LITE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LITE and that has a 100x upside potential, check out our report about the cheapest AI stock.

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