Lumentum Holdings (NASDAQ:LITE) announced plans to invest 2.3 billion baht ($70.3 million) to expand its production capacity in Thailand. The U.S. supplier of optical and photonic products aimed to manufacture chips that support the development of artificial intelligence.
The investment reflects the Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) partner’s strategy to capitalize on the growing global demand for AI-enabled components and strengthen its footprint in Southeast Asia, the Nikkei Asia reported on Friday.
Stock Performance
Lumentum’s stock has soared 82% in 2025, demonstrating significant outperformance against the S&P MidCap 400, which has returned about 5.5% this year.
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The company’s impressive ascent is being powered by its strategic position within the cloud and AI revolution, as demand for its optical products continues to accelerate with the expansion of high-speed data centers and computing networks.
Strong Financial Results and Outlook
The company’s latest financial reports highlight strong revenue growth, particularly in its Cloud & Networking segment, which accounts for the vast majority of its revenue.
In August, Lumentum reported stronger-than-expected fourth-quarter results. The EPS of 88 cents compared to the analyst consensus of 80 cents and revenue of $480.7 million, topped the projected $465.8 million.
CEO Michael Hurlston highlighted robust demand across the company’s cloud products, supporting AI data centers.
Lumentum projected first-quarter adjusted EPS between 95 cents and $1.10 and sales of $510 million to $540 million, expecting to surpass $600 million in quarterly revenue by June 2026.
Analyst and Expert Commentary
Following the earnings release, analysts, including Needham, Bank of America Securities, and Stifel, adjusted their price forecasts for Lumentum.
On September 15, during the “Mad Money Lightning Round” on CNBC, Jim Cramer recommended selling half of Lumentum stock.
Price Action: LITE stock was trading lower by 6.01% to $150.16 at last check Friday.
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