Lumentum Holdings: Upgrade To Strong Buy As Earnings Validate My Bull Thesis
Portfolio Pulse from
Lumentum Holdings has been upgraded to a strong buy following impressive 2Q25 results, with revenue growth driven by demand in the Cloud & Networking segment. The company reported a 10% year-over-year revenue increase to $402 million, surpassing guidance, and expects further growth in 3Q25. Major AI infrastructure investments in the US and Europe are boosting demand for Lumentum's high-speed optical transceivers.
February 14, 2025 | 9:00 am
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Lumentum Holdings has been upgraded to a strong buy due to strong 2Q25 results and momentum in the Cloud & Networking segment. Revenue grew 10% y/y to $402 million, exceeding guidance, with further growth expected. AI infrastructure investments are driving demand for Lumentum's products.
The upgrade to a strong buy is based on Lumentum's robust 2Q25 earnings, which exceeded expectations, and the positive outlook for the Cloud & Networking segment. The company's products are in high demand due to major AI infrastructure investments, indicating potential for continued revenue growth.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100