AI infrastructure demand continues to strengthen the optical networking growth story, according to Josh Brown.

  • Lumentum delivered triple-digit revenue growth for the eighth straight quarter.
  • Management’s latest outlook came in well above Wall Street expectations.
  • A break above the $1,085 record high could put LITE stock in fresh breakout territory.

Lumentum Holdings could still have upside after a 450% rally over the past year, as surging AI data center spending drives demand for the optical components needed to move data at high speeds.

The stock has risen sharply after years of relatively muted performance, gaining 339% in 2025 alone and continuing its rally this year. 

While the magnitude of the move has raised concerns that investors may have missed the opportunity, a recent analysis from Ritholtz Wealth Management CEO Josh Brown argued that the fundamental growth story remains intact.

LITE shares were up nearly 2% in premarket trading on Friday.

LITE Stock: Revenue Growth Shows Little Sign Of Slowing

Lumentum reported fiscal fourth-quarter revenue of $1.01 billion, up 109% and above its guidance. Brown argued it marked the company’s eighth consecutive quarter of growth. Non-GAAP gross margin rose to 50.4%, while adjusted EPS of $3.23 topped the $2.97 consensus estimate.

Management expects the momentum to continue, guiding fiscal Q1 2027 revenue to $1.23 billion-$1.28 billion, with the midpoint representing roughly 130% growth and exceeding Wall Street’s estimate of about $1.15 billion.

Lumentum makes lasers, transceivers and optical circuit switches used by AI data centers, cloud providers and telecom networks, putting it at the center of the broader AI infrastructure buildout.

Breakout Could Open New Territory

LITE recently traded around $937, below its May record high of $1,085. The stock has rebuilt an uptrend after falling back toward its 200-day moving average during the summer, Brown said in his CNBC column.

A move above $1,085 could signal a fresh breakout. The stock’s rising 50-day moving average around $854 provides a nearer-term technical reference, while the 200-day sits around $726.

Lumentum is also the largest holding in Roundhill’s Photonics & Optics ETF (LYTE), highlighting its growing prominence in the AI-driven photonics theme. 

Retail View On LITE

On Stocktwits, the retail sentiment for LITE dipped in the past week and was ‘bearish’ on Friday.

LITE stock has gained 152% year-to-date, while peers Coherent and Applied Optoelectronics have surged 57% and 190%, respectively.

 

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