Lumentum (LITE) Surged To Its All-Time High Amid Strong Fundamentals, Jefferies Raises PT to $1,200 Faheem Tahir May 11, 2026 3 min read LITE JEF Having reached its all-time high of $978.35 on May 1, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) secured a spot on our list "Sizzling returns: 7 tech stocks that just hit new all-time highs". The stock has gained 145.20% so far in 2026 as of May 8, 2026. 12 Hot AI Stocks on Wall Street's Radar After rising 1,276.48% over the past year as of May 8, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) trades near an all-time high, compared with an 85% gain for the broader communication equipment industry over the same period. That surge, driven by the AI infrastructure boom, gained fresh momentum on May 5, 2026, when the company reported strong fiscal Q3 2026 results.
Following the results, analysts at Barclays expressed greater confidence that the company can achieve its $25-per-share EPS target by 2027. Meanwhile, Jefferies described the results as solid, emphasizing that the business is starting to improve significantly, with margins finally inflecting. The company's net revenue for the quarter came in at $808.4 million, marking a significant increase from $665.5 million.
Non-GAAP gross margin rose from 42.5% in Q2 2026 to 47.9% in Q3 2026. The company posted non-GAAP EPS of $2.37, up from $1.67 in Q2 2026 and $0.57 in Q3 2025. As of May 7, 2026, Barclays maintained an "Equal Weight" rating, while Jefferies reiterated its "Buy" rating on the stock.
Following the results, Barclays raised its price target on the stock from $750 to $1,000, while Jefferies increased its price target from $900 to $1,200. Meanwhile, the fundamental narrative had already been strengthening following a series of earlier developments. In mid-March, Lumentum Holdings Inc. (NASDAQ:LITE) presented its comprehensive AI infrastructure portfolio at OFC 2026, which included an 800 mW Super-High-Power laser, a 1.6T DR4 OSFP transceiver prototype, and a 16-channel DWDM ultra-high-power laser.
The products are designed to support the next-generation hyperscale data center connectivity across various architectures. Following that announcement, Lumentum Holdings Inc. (NASDAQ:LITE) later in March announced the acquisition of a manufacturing facility from Qorvo in Greensboro, North Carolina. The facility will be used to produce InP-based CW and UHP lasers for major AI data center operators, with management planning to invest hundreds of millions of dollars into the facility.
Management expects a production ramp by mid-2028, with NVIDIA already among its customers. Lumentum Holdings Inc. (NASDAQ:LITE) manufactures and sells optical and photonic products globally. Story Continues While we acknowledge the potential of LITE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.
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