The demand for high-precision lasers is surging as AI workloads increase and cloud giants upgrade their optical backbones, leading to higher demand for laser technology. Lumentum Holdings (LITE) is a key player in this surge, with its stock soaring 267% in 2025 due to hyperscale demand. The company’s Q1 fiscal 2026 results showed a 58% YoY revenue increase to $533 million, driven by AI demand. Analysts are optimistic about Lumentum’s future, with Needham naming it a “Top Pick for 2025” and Mizuho raising its price target to $325. The stock currently has a consensus “Moderate Buy” rating.

Read more at Barchart: ‘Insatiable’ Demand Is Powering This ‘Picks and Shovels’ AI Stock up 245%. Should You Buy It Here?