Top 10 Stocks That Will Profit from AI

8. Lumentum Holdings Inc. (NASDAQ:LITE)

Number of Hedge Fund Holders: 97

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the Top 10 Stocks That Will Profit From AI. The company is a critical provider of high-speed optical interconnects and laser technologies required to connect AI clusters in massive data centers.

On May 7, 2026, Barclays raised the firm’s price target on Lumentum Holdings Inc. (NASDAQ:LITE) from $750 to $1,000. The firm’s analyst Tom O’Malley kept an Equal Weight rating on the company’s stock. The adjustment follows the Q3 2026 earnings report released on May 5, 2026, in which the company highlighted 90% year-over-year revenue growth to $808.4 million, driven primarily by transceiver and laser chip growth. According to Tom O’Malley’s research note, the company has a clearer line of sight to $25 in earnings per share in 2027.

In another recent development, on May 11, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) announced its inclusion in the Nasdaq-100 Index, marking a significant milestone in the company’s journey. The inclusion is expected to be made formal on May 18, 2026, before the market opens. Michael Hurlston, President and CEO at Lumentum Holdings Inc. (NASDAQ:LITE), believes that the inclusion will improve the company’s visibility with global investors.

Founded in 1979, Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products. It operates through two segments: Cloud and Networking, which deals with optical and photonic components, modules, and subsystems, and Industrial Tech, which includes solid-state lasers, kilowatt-class fiber lasers, ultrafast lasers, diode lasers, and gas lasers.