Key Stats for Lumentum Stock
- Price change for Lumentum stock in last 6 months: -19%
- $LITE Stock Price as of Oct. 8: $128
- 52-Week High: $171
- $LITE Stock Price Target: $149
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What Happened?
Lumentum (LITE) rose 6% in early-market trading today. CEO Michael Hurlston told Bloomberg Television in Tokyo that the company’s optoelectronic components are effectively sold out through early 2029.
Demand is a key driver, as tech companies race to build faster AI data centers.
Hurlston said Lumentum can’t meet about 70% of demand for some products through next year. For certain other products, it can’t meet about 30% of demand through 2028.
This is a big shift. Six months ago, Hurlston said the company was on track to sell out capacity by 2028. That horizon has now moved out by about a year.
Lumentum is adding capacity. It has added a fab in Greensboro, North Carolina. It is also expanding a second fab in Japan.
But Hurlston warned that new laser capacity takes about three years to reach customers. Real relief may not come until 2029 to 2030.
The news lifted the whole optical group.
Coherent, Applied, AXT, MaxLinear and Amphenol each rose over 6% in pre-market trading. The day before, the group fell on fears of pricing pressure on optical chips.
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What the Market Is Telling Us About Lumentum Stock
Investors are treating this as a strong demand signal. Lumentum stock is also getting support from a $2 billion strategic investment from NVIDIA and a Stifel price target of $1,232.
The recent earnings call backs up the story. Revenue more than doubled to $1.01 billion. It was the eighth straight quarter of growth.
Non-GAAP gross margin passed 50%. Non-GAAP EPS was $3.23.
Management also said the company is falling behind on some products. It said it is “way behind” on high-powered lasers because demand keeps rising.
It expects pump laser shipments to grow fourfold over the next several quarters. The next quarter looks strong too. Management expects Q1 revenue of $1.25 billion at the midpoint.
That is more than 130% growth from a year ago. Non-GAAP operating margin is expected at 39.5% to 40.5%.
There are risks. Lumentum stock has already run up and sits near its 52-week high.
Chinese indium phosphide fabs were also raised as a competitive worry on the call. Hurlston said he hasn’t seen any impact yet.
For now, Lumentum stock is trading on one question: can supply catch up to demand? Anyone watching Lumentum stock will also track how fast the new fabs come online.
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So what is Lumentum stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
