LITE - Lumentum Holdings

Tanner started a new position in Lumentum, citing the photonics bottleneck in data centers, partnerships with Nvidia and Google, and revenue growth potential. He describes it as an 'invest then investigate' situation.

Nvidia partnership with $2B investment and multi-billion dollar purchase commitment, accelerating revenue growth (90% YoY), improving gross margins, supply-demand imbalance with supply still lagging, Rule of 40 at 126%, strong free cash flow, and long-term tailwinds from data center optical upgrades to 1.6T and CPO adoption.

Host believes CPO optics will be the next bottleneck and Lumentum has significant growth ahead, similar to Micron setup.

Host identifies co-package optics as a secondary AI bottleneck that could become a primary one. He favors Lumenum over Coherent based on growth rates, noting exploding margins and free cash flow growth. He wishes he could buy more AI infrastructure names.

Host is very bullish on co-package optics as a secondary bottleneck that could become primary. He likes Lumentum more than Coherent based on growth, with margins exploding and free cash flow rising. He would buy more if he had more capital.

Optical networking play, growing quickly, secondary player becoming primary, invested in by Nvidia, AI networking bottleneck

Mentioned as an infrastructure name the host wants to research. Part of the photonics/fiber optics AI infrastructure play.

Fell nearly 8% today, showing signs of slowing uptrend and forming lower highs. Host sees increased risk of continued profit-taking similar to Broadcom.

Host lists Lumentum as one of the Nvidia equity-backed companies benefiting from AI infrastructure demand.

Trend line break, retrace, now heading lower. Head and shoulders pattern forming or possibly just broke — bearish formation. Stock went from ~$200 to over $1,000 and has corrected back to ~$800.