To The Moon

The AI trade isn’t just about chips anymore.

My Stock of the Day is $Lumentum(LITE)$  a company sitting in a less obvious but increasingly important part of the AI infrastructure chain.

What does Lumentum do?

Lumentum makes optical and photonic components that allow huge amounts of data to move quickly between servers, switches and data centres.

Think of it this way:

GPUs are the brains.

Optics are the highways connecting them.

As AI clusters get larger, the amount of data moving between GPUs is exploding. Traditional electrical connections become harder to scale efficiently, increasing the importance of high-speed optical technology.

And LITE is already seeing that demand.

Its latest quarter delivered more than $1 billion in revenue, up 109% year over year, while earnings jumped 267%. Wall Street is forecasting full-year 2026 revenue of around $6.29 billion, with AI infrastructure a major growth driver. 

That’s what makes LITE interesting to me.

We’re seeing the AI investment cycle spread through the entire infrastructure stack:

Chips → memory → networking → optics → power.

LITE sits right in the middle of the networking and connectivity piece.

There is also a potentially important next step: as AI systems become even more densely packed, technologies such as co-packaged optics could help move data faster while addressing power and bandwidth constraints.

Of course, the stock has already had a huge run, so expectations are high. That’s the biggest risk.

But I like the setup because this isn’t simply a bet on people spending more money on AI software.

It’s a bet on a very physical problem:

AI needs to move more data, faster.

And somebody has to build the pipes.

$LITE is my Stock of the Day to watch. 👀