Lumentum: AI Boom Drives Laser Demand – $40 EPS in Sight by 2028

Lumentum benefits from the AI data center boom, as higher data rates push copper connections to their limits and optical connections become essential. The 4th quarter impressed with more than doubling revenue and achieving a previously unanticipated adjusted gross margin of over 50%. New demand for 1.6T transceivers, high-performance lasers, and OCS leads management to expect an adjusted EPS of $40 by 2028. Lumentum Holdings (LITE) develops lasers, transceivers, and optical switching systems for cloud and AI networks. As GPU clusters...