Lumentum Leaps Nearly 8% During AI Optics Boom

"Recently, the two discussed the ongoing growth of the optics industry. Optical interconnects are becoming increasingly important as data centers expand because traditional copper solutions are limited by distance, data rate, and thermal constraints. This is why companies like Lumentum, Coherent, and Finisar have already seen strong gains and remain core investments in this space. Other companies, such as Sienna and Applied Optoelectronics, also contribute to the sector's growth potential."

"Yeah, you know, we allude to it if someone wants to catch up on optics. The episode to listen to is March 28th of last year. The title of that episode is I've Got Right Here. These Optical Stocks Could Be Set to Ride an AI Supercycle. The main stocks we discussed on that podcast were Lumentum (NASDAQ: LITE), Coherent (NASDAQ: COHR), and Finisar. We've recommended all three and purchased them since the day of that podcast."

Optical interconnects are increasingly critical as data center expansion exposes the limits of copper solutions in distance, data rate, and thermal performance. Leading optics companies such as Lumentum, Coherent, and Finisar have experienced strong gains and are seen as core investments, while firms like Sienna and Applied Optoelectronics add additional growth potential. The optics sector may possess significant pricing power because supply cannot meet surging demand. The challenge of interconnecting large-scale data centers makes legacy solutions unreliable at future scale. Investors can consider both primary and secondary plays, while some memory names like SanDisk may entail higher long-term risk. The sector remains in an early growth cycle and appears attractive for investment.

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