Lumentum

LITE

Market cap $70.4B

Shares of Applied Optoelectronics (NASDAQ:AAOI) are up 20% in midday trading to around $190, snapping back hard from a Friday close of $158.41.

Lumentum Holdings Inc (NASDAQ:LITE) experienced a significant Power Inflow alert, a key bullish indicator that is closely tracked by traders who value order flow analytics, specifically institutional and retail order flow data.

Less than 10% of S&P 500 stocks have Strong Buy Quant Ratings. Using Seeking Alpha's stock screener, I found five with the strongest forward earnings growth. The S&P 500 index remains the most visible stock benchmark, accounting for 80% of market capitalization, and has reached new highs despite rising inflation and geopolitical uncertainty. Strong corporate earnings growth has helped fuel the S&P 500's rally in 2026, even amid skepticism from some investors over elevated valuations and exuberant AI-related spending.

LITE's AI laser chip business gains steam with record EML shipments, surging 200G demand and expanding CPO opportunities supporting growth.

The meteoric rise in Intel (NASDAQ:INTC | INTC Price Prediction) stock has arguably been the biggest story of the past year.

CMPR, MTSI and LITE pick up momentum interest as a tech-led AI rally lifts U.S. stocks to fresh highs.

Fund manager Gavin Baker identified a "cross-sectional inefficiency" in AI stocks. He argued that valuations can't be accurate for both the cheap and expensive stocks in AI.

During the first quarter, we initiated a position in Alphabet Inc., the parent company of Google and one of the world's most valuable technology franchises. We added to our position in Shopify Inc., the leading global operating system for commerce, after shares pulled back in a broader software sell-off. We exited our investment in Microsoft Corporation due to a combination of near-term execution shortfalls and longer-term structural concerns about its competitive positioning in AI.

Shares of Applied Optoelectronics (NASDAQ:AAOI) are down 9% midday Friday to roughly $154, leading a broader cool-off in AI optics names.

AI-driven tech gains are lifting markets in May as CIEN, LITE, TER, MCHP and TXN ride strong demand trends.