nLIGHT, Inc. (LASR): A Bull Case Theory

We came across a bullish thesis on nLIGHT, Inc. on X.com by pennycheck. In this article, we will summarize the bulls’ thesis on LASR. nLIGHT, Inc.'s share was trading at $31.20 as of September 18th.

The company continues to strengthen its position in the defense technology market through major contract wins and operational execution. Its $171 million HELSI Phase 2 program to develop a 1-megawatt direct energy laser, the most powerful known laser weapon globally, is progressing toward 50% completion and remains on track for delivery in 2026. In parallel, the U.S. Army’s $35 million DE M-SHORAD program for a 50-kilowatt laser is nearing completion, placing the company at the forefront of the fast-growing counter-drone market, capable of neutralizing class 3 drones.

These defense programs drove record second-quarter revenues, with aerospace and defense sales reaching $40.7 million, representing 66% of total revenue, up 49% year over year and 24% sequentially. Management raised revenue guidance to $66 million for the third quarter and increased 2026 estimates to $271.6 million, reflecting robust defense demand and strong backlog that supports sequential growth into year-end. Analysts have responded positively, with one raising the price target by 22% to $33.50 and reiterating an Overweight rating, highlighting the company as one of the strongest opportunities in the sector.

Strategically, the firm secured an unexpected international win, believed to be linked to the UK’s DragonFire laser program, while also benefiting from the U.S. Golden Dome initiative, which could drive long-term growth from 2026 onward. Industrial applications such as cutting and welding remain a steady contributor, and operational improvements, including advanced amplifier production, quality controls, and stable microfabrication revenues, further support scaling. With catalysts across defense, industrial, and international markets, the company is well-positioned for significant upside.

Previously we covered a bullish thesis on Photronics, Inc. (PLAB) by Virtual_Seaweed7130 in April 2025, which highlighted the company’s leadership in the photomask industry, strong profitability, and undervaluation versus peers. The stock has appreciated approximately 41.42% since coverage due to robust fundamentals. The thesis still stands as semiconductor capex grows. Pennycheck shares a similar bullish view but focuses on defense-driven growth in nLIGHT, Inc. (LASR).

NLIGHT, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held LASR at the end of the second quarter which was 17 in the previous quarter. While we acknowledge the potential of LASR 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.

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Disclosure: None.