Jim Cramer on Lumentum: "We'll Play With the House's Money"

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the stocks on Jim Cramer’s radar. A caller, who took a position in the stock years ago after a positive impression from its appearance on the show, asked whether to hold or sell now that the stock has recently surged after years of stagnation. Cramer replied:

“No, no, we’re going to sell half on Monday morning. Half, okay? Then we’ll play with the house’s money, and we’ll be incredibly happy, even happier than we are now.”

Lumentum Holdings Inc. (NASDAQ:LITE) produces optical and photonic products, including chips, components, and lasers, which support cloud data centers, AI infrastructure, and various manufacturing sectors such as semiconductors, solar cells, and electric vehicle batteries. Invesco Small Cap Value Fund stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its Q4 2024 investor letter:

“Lumentum Holdings Inc. (NASDAQ:LITE): The telecommunications equipment maker reported better-than expected revenue and earnings for its recent quarter, along with record orders for its data communications laser chips used in data center applications.”

While we acknowledge the potential of LITE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.