Lumentum Holdings LITE
Lumentum Holdings is a manufacturer of high-tech optical and photonic products, including lasers, components, and modules for communications networks, especially for data centers and artificial intelligence applications. Lumentum benefits from the AI boom with 109.30% revenue growth and strong momentum (456.77% in 12 months), but its valuation is extremely demanding (EV/EBITDA of 104.16) and its quality is poor (ROE of -240.03), making it vulnerable to a correction if the AI cycle moderates.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Lumentum Holdings is a manufacturer of high-tech optical and photonic products, including lasers, components, and modules for communications networks, especially for data centers and artificial intelligence applications. Lumentum benefits from the AI boom with 109.30% revenue growth and strong momentum (456.77% in 12 months), but its valuation is extremely demanding (EV/EBITDA of 104.16) and its quality is poor (ROE of -240.03), making it vulnerable to a correction if the AI cycle moderates.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.2 |
| Quality / Moat | 4.6 |
| Valuation | 3.8 |
| Growth | 9.5 |
| Dividend | 1.5 |
| Momentum | 9.8 |
| Risk & Context | 3.3 |
OVERALL SCORE: 5.8/10
Context and risks
Lumentum operates in the semiconductor and optical technology sector, directly affected by geopolitical tensions between the US and China and by doubts about AI security, which are weighing on technology stocks. Additionally, its high beta (3.77) amplifies volatility in response to any macro or geopolitical news.
News considered in the analysis
- AI Trade Picks Up Again as Investors Pile Back Into Stocks — El renovado apetito por valores de IA apoya la demanda de componentes ópticos de Lumentum, aunque el sentimiento ya está parcialmente reflejado en el fuerte rally de la acción.
- LITE Stock Has Run 450% In 12 Months: Ritholtz Wealth CEO Thinks There Is Room For More — Comentario positivo de un gestor conocido sobre el potencial de la acción, pero es opinión y no un hecho fundamental; el rally ya está en el precio.
- Coherent Has Ripped 59% in 2026: Is It Too Late to Buy COHR Stock Now? — Noticia sobre un competidor directo; no aporta información nueva sobre Lumentum.
- Applied Optoelectronics Rides on AI Boom: Can It Beat LITE and FN? — Comparativa genérica entre competidores del sector; sin información específica sobre Lumentum.
- AI Data Center Boom Faces This 'Fundamental Trade-Off' With China — Las restricciones a la exportación de tecnología a China podrían limitar el mercado direccionable de Lumentum, aunque su exposición a China no está cuantificada en los datos disponibles.
Verdict: Hold, with caution: growth is real, but the valuation already discounts a very optimistic scenario and the risk of a correction is high.
Main risk: The main risk is the extreme valuation (EV/EBITDA of 104.16) combined with dependence on the AI capex cycle, which could slow if hyperscalers cut investments or if export restrictions to China limit its market.
Other Technology companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →