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Lumentum (LITE) just gave investors exactly what they want from a long-term winner: another reason to keep holding.
The optical-networking company just reported roughly $1.01 billion in quarterly revenue, more than double what it generated a year ago. Adjusted earnings jumped to $3.23 per share, and management guided the current quarter to between $1.225 billion and $1.275 billion in revenue. Wall Street had expected less on both counts.
The underlying AI thesis is working.
Data centers are growing larger. AI clusters are connecting more chips. More data has to move between those chips at greater speeds. And copper wiring can only carry that traffic so far before power consumption and physical constraints become a problem.
