Why Lumentum (LITE) Remains Tied to the Optical Bottleneck Inside AI Data Centers

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the fastest-growing AI infrastructure stocks to buy. On June 11, 2026, J.P. Morgan reiterated an Overweight rating on Lumentum and argued that investor concerns around co-packaged optics adoption were overstated. The firm pointed to continued progress from NVIDIA and broader customer interest in co-packaged and near-packaged optics, keeping Lumentum closely tied to the optical layer of AI data centers. That layer is becoming more important as AI clusters require faster, lower-latency links between chips, switches, racks, and data halls.

Lumentum’s recent growth already reflects that demand shift. In its fiscal third-quarter 2026 results, the company reported revenue of $808.4 million, up 90% from $425.2 million a year earlier, while GAAP net income improved to $144.2 million from a net loss of $44.1 million. Management also highlighted co-packaged optics and optical circuit switches as future earnings drivers.

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Lumentum Holdings Inc. (NASDAQ:LITE) provides optical and photonic products for cloud networking, AI data centers, telecom, industrial, and sensing applications.

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