Lumentum (LITE0 Climbs 9.6%, Mirrors Broader Market Rally

We recently published 10 Big Names Crushing the Market. Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best-performing stocks on Friday.

Lumentum Holdings jumped by 9.58 percent on Friday to close at $255.59 apiece as investor sentiment was generally bolstered by a broader market optimism over renewed hopes of an interest rate cut.

The Federal Reserve is set to meet on December 9 and 10 for their final Federal Open Market Committee (FOMC) meeting for the year to discuss their decision on benchmark rates.

John Williams, president and CEO of the Federal Reserve Bank of New York, believes that there is still room “for further adjustment in the near term to the target range for the federal funds rate.”

His remarks came after Federal Reserve Chairman Jerome Powell’s signals earlier that a rate cut in December was not guaranteed.

Meanwhile, Lumentum Holdings Inc. (NASDAQ:LITE) earlier this week received a bullish coverage from investment firm Mizuho Securities.

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 13.46 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.

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.

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.