Lumentum

LITE

Market cap $23.5B

Lumentum is a growth-focused AI infrastructure play, projecting up to 40% y/y revenue growth in fiscal 2026. Despite rapid profit margin expansion, LITE's free cash flow remains weak and close to breakeven, raising sustainability concerns. Customer concentration—40% of revenues from two clients—and a $2B net debt position introduce notable risk factors.

Networking components specialist Lumentum is clocking terrific growth in its revenue and earnings. The stock can be bought at a relatively attractive valuation right now.

SAN JOSE, Calif.--(BUSINESS WIRE)--Lumentum Holdings Inc. (“Lumentum”), a market-leading designer and manufacturer of optical and photonic products, announced today its participation in SPIE Photonics West 2026, where it will showcase high-power ultrafast, UV, and 3D sensing laser solutions designed to meet the growing precision, throughput, and reliability demands of advanced manufacturing and sensing applications. Attendees are invited to visit Lumentum booth #2343 at the San Francisco Moscon.

Despite major gains by a small number of mega-cap tech firms last year, the market rewarded investors willing to take a chance on some slightly less well-known stocks in 2025. Among the best performers of the year were photonics company Lumentum Holdings Inc. NASDAQ: LITE, which more than quadrupled in value, and aerospace broadband firm AST SpaceMobile NASDAQ: ASTS, the latter of which climbed by about 244% for the year.

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.At January 13 at 10:01 AM EST, LITE triggered a Power Inflow signal at a price of $352.91. LITE's price had seen some slight pullback following an initial price rise prior to the Power Inflow alert.

Below, we review the top 10 tech stocks of 2025, selected based on their price action, fundamentals, and presence within leading tech themes. Sandisk has claimed the crown as the S&P 500's top performer, delivering a stunning 559.4% return that outpaced the broader market by a wide margin. 2025 shifted the AI narrative. The focus rotated toward the "physical" layers of the stack, revealing that memory, storage, and energy are now the industry's critical bottlenecks.

Lumentum's stock has quadrupled over the past year, but the optical component company plays into key AI themes that could fuel further gains.

CIEN, LITE and GLW lead the Communication Components group riding on surging AI-driven network demand.

Other networking-oriented stocks have more than tripled in the past year, but not Cisco and Arista.

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.