Lumentum Holdings (LITE) Hits All-Time High After Analyst Turns Bullish

We recently published 10 Stocks Beating Wall Street at its Own Game. Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best-performing stocks on Wednesday.

Lumentum extended its winning streak to a 4th straight day on Wednesday to hit a new all-time high as investors after earning a bullish coverage from an investment firm.

During the session, the stock soared to its highest price of $280.22 before trimming gains to end the day just up by 8.69 percent at $268.92 apiece.

In a market note, Mizuho Securities initiated coverage on Lumentum Holdings Inc. (NASDAQ:LITE) with a “buy” recommendation and a price target of $290. The figure marks a 7.8 percent upside from its latest closing price.

Mizuho cited Lumentum Holdings Inc.’s (NASDAQ:LITE) position as a leading optical communications and laser supplier for data centers, telecommunications, and other markets, benefitting from a strong artificial intelligence demand.

Earlier this month, Lumentum Holdings Inc. (NASDAQ:LITE) also received a 60 percent price target from Wolfe Research, alongside an “outperform” rating on expectations that its indium phosphide laser solutions would highly benefit from the rapid development of the artificial intelligence industry.

In the first quarter of fiscal year 2026, Lumentum Holdings Inc. (NASDAQ:LITE) swung to a net income of $4.2 million from a $82.4 million net loss in the same period last year. Net revenues jumped by 58.4 percent to $533.8 million from $336.9 million year-on-year.

Encouraged by the results, the company further raised its net revenue outlook for the second quarter to a range of $630 million to $670 million, with diluted earnings per share of $1.30 to $1.50.

While we acknowledge the potential of LITE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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