When AI stocks rebounded last week, optical networking companies did not rebound equally.
Lumentum Holdings Inc. (NASDAQ:LITE) jumped nearly 10% in Wednesday trading and led the S&P 500, while Coherent rose 6.9%. Corning Incorporated (NYSE:GLW) managed only a 0.4% gain and remained down sharply for the week.
All three sit inside the same broad AI-connectivity buildout. The divergence suggests investors are beginning to distinguish between different pieces of that infrastructure rather than buying every optics name together.
Photo from Lumentum Holdings website
AI clusters increasingly need optical connections as more accelerators communicate across larger physical distances. That drives demand for high-speed transceivers, lasers and other photonic components.

#NASDAQ #lite #wednesday #coherent

Coherent jumped 6% and Lumentum climbed 5% with no catalyst, driven by short covering after both stocks fell sharply over the prior month.
SOXX gained only 2% and SPY just 0.3%, making the optics group's surge a positioning-only bounce confined to the sector, not a broad re-rating.
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Optics stocks are rebounding Wednesday morning without a fresh headline to point to, and the size of the group's move relative to the broader market is the story. The iShares Semiconductor ETF (NASDAQ:SOXX) is at $508.59, up 2%, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is at $759.69, up just 0.3%. The three optics names running today are outpacing both benchmarks by a wide margin.
Coherent Corp. (NYSE:COHR) stock is up 6% to $287.21 in Wednesday morning trading. The bounce arrives after a rough stretch. Coherent shares had fallen 12% over the past month heading into today's session, and that drawdown is the part of the setup that hasn't been undone.

#optics

Parnassus Investments, an investment management company, released the "Parnassus Growth Equity Fund" second-quarter 2026 investor letter. The letter can be downloaded here. During the quarter, the Fund (Investor Shares) returned 17.49% (net of fees), outperforming the Russell 1000 Growth Index's 16.74%. Holdings in Information Technology and Consumer Discretionary sectors boosted relative returns, while Communication Services and Financials holdings detracted. For the year-to-date period, the Fund returned 6.17% (net of fees), outperforming the Russell 1000 Growth's 5.33%. The firm remains constructively bullish on U.S. equities and continues to be selective, valuation-sensitive, and focused on disruptive growth opportunities through active stock selection. Growth stocks advanced during the second quarter, as the Russell 1000 Growth Index generated strong double-digit returns driven by increased confidence in the durability of the ongoing artificial intelligence (AI) infrastructure build-out. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, Parnassus Growth Equity Fund highlighted Lumentum Holdings Inc. (NASDAQ:LITE). Lumentum Holdings Inc. (NASDAQ:LITE) is a leading technology company that manufactures and sells optical and photonic products. On September 15, 2026, Lumentum Holdings Inc. closed at $838.96 per share. Over the past month, Lumentum Holdings Inc. gained 6.57%, and its shares are up 439.98% over the past year. Lumentum Holdings Inc. has a market capitalization of $75.25 billion, and its stock has traded within a 52-week range of $144.52 to $1,085.68.
Parnassus Growth Equity Fund stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its Q2 2026 investor letter:
"Lumentum Holdings Inc. (NASDAQ:LITE) offers exposure to a key bottleneck in AI infrastructure, optical networking, as rising data demand drives a shift away from copper-based systems. Its components enable faster, more efficient data transfer and benefit from strong competitive advantages, including deep technical expertise and high switching costs once embedded in customer platforms."
Lumentum Holdings Inc. (NASDAQ:LITE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 111 hedge fund portfolios held Lumentum Holdings Inc. (NASDAQ:LITE) at the end of the second quarter, down from 123 in the previous quarter. While we acknowledge the potential of Lumentum Holdings Inc. (NASDAQ:LITE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

#Growth #fund #quarter #parnassus

Parnassus Investments, an investment management company, released the "Parnassus Growth Equity Fund" second-quarter 2026 investor letter. The letter can be downloaded here. During the quarter, the Fund (Investor Shares) returned 17.49% (net of fees), outperforming the Russell 1000 Growth Index's 16.74%. Holdings in Information Technology and Consumer Discretionary sectors boosted relative returns, while Communication Services and Financials holdings detracted. For the year-to-date period, the Fund returned 6.17% (net of fees), outperforming the Russell 1000 Growth's 5.33%. The firm remains constructively bullish on U.S. equities and continues to be selective, valuation-sensitive, and focused on disruptive growth opportunities through active stock selection. Growth stocks advanced during the second quarter, as the Russell 1000 Growth Index generated strong double-digit returns driven by increased confidence in the durability of the ongoing artificial intelligence (AI) infrastructure build-out. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, Parnassus Growth Equity Fund highlighted Lumentum Holdings Inc. (NASDAQ:LITE). Lumentum Holdings Inc. (NASDAQ:LITE) is a leading technology company that manufactures and sells optical and photonic products. On September 15, 2026, Lumentum Holdings Inc. closed at $838.96 per share. Over the past month, Lumentum Holdings Inc. gained 6.57%, and its shares are up 439.98% over the past year. Lumentum Holdings Inc. has a market capitalization of $75.25 billion, and its stock has traded within a 52-week range of $144.52 to $1,085.68.
Parnassus Growth Equity Fund stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its Q2 2026 investor letter:
"Lumentum Holdings Inc. (NASDAQ:LITE) offers exposure to a key bottleneck in AI infrastructure, optical networking, as rising data demand drives a shift away from copper-based systems. Its components enable faster, more efficient data transfer and benefit from strong competitive advantages, including deep technical expertise and high switching costs once embedded in customer platforms."
Lumentum Holdings Inc. (NASDAQ:LITE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 111 hedge fund portfolios held Lumentum Holdings Inc. (NASDAQ:LITE) at the end of the second quarter, down from 123 in the previous quarter. While we acknowledge the potential of Lumentum Holdings Inc. (NASDAQ:LITE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

#lumentum #lite #Growth #investor

The latest monthly list of new buys by the best mutual funds puts a dazzling spotlight on Lumentum (LITE). These savvy money managers scooped up an eye-catching $13.11 billion worth of Lumentum stock. The optical and photonics giant plays a key role in powering the infrastructure behind artificial intelligence, cloud computing, and next-generation communications. Demand from top funds continues to…

#funds #list

Stewart ***** et Management's flagship portfolio returned 15.97%, net of fees, in the second quarter, and the S&P 500 Index gained 15.20%. YTD, it appreciated 5.37%, net of fees, and the S&P 500 Index gained 10.21%. The letter can be downloaded here. Despite geopolitical uncertainties, share prices surged higher as emerging prospects for a ceasefire in the Middle East restored market composure and investor optimism for continued earnings growth in the second half of the year. Volatility in share prices was noted, particularly tied to industrial trends like AI, with comparisons made to the internet boom and personal computer adoption. Despite concerns about extreme valuations and potential corrections, the conclusion is that strong earnings growth is fundamental to rising share prices, emphasizing the importance of investing in robust businesses. Please check the fund's top five holdings for its best picks in 2026.
In its second-quarter 2026 investor letter, Stewart ***** et Management highlighted Lumentum Holdings Inc. (NASDAQ:LITE). Lumentum Holdings Inc. (NASDAQ:LITE) is a leading technology company that manufactures and sells optical and photonic products. On September 04, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) closed at $881.26 per share. Over the past month, Lumentum Holdings Inc. (NASDAQ:LITE) gained 13.83%, and its shares are up 519.81% over the past year. Lumentum Holdings Inc. (NASDAQ:LITE) has a market capitalization of $79.05 billion, and its stock has traded within a 52-week range of $144.52 to $1,085.68.
Stewart ***** et Management stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its Q2 2026 investor letter:
"During the quarter we initiated a small investment in Lumentum Holdings Inc. (NASDAQ:LITE), a leader in optical networking — the hardware that moves data between AI chips, servers, and data centers. We believe AI infrastructure spending is driving an optical upgrade cycle from which Lumentum may benefit. Demand outstrips supply, and customer agreements now extend through 2027 as data centers grow in number and size. Capturing this opportunity requires execution on capacity expansion and continued hyperscaler willingness to invest in AI infrastructure. The primary risks ***** ociated with the company are its concentration of revenue from a small number of customers, product timelines shifting and emerging technologies. However, we believe that the positives noted above outweigh these risks."
Lumentum Holdings Inc. (NASDAQ:LITE) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 111 hedge fund portfolios held Lumentum Holdings Inc. (NASDAQ:LITE) at the end of the second quarter, down from 123 in the previous quarter. While we acknowledge the potential of Lumentum Holdings Inc. (NASDAQ:LITE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that a

POET (NASDAQ: POET) secured a $50 million Lumilens purchase order, and our model sees 137% upside to a $17.74 BUY price target.
Lumentum (LITE) generates $1 billion quarterly on the same optical tailwind; Applied Optoelectronics (AAOI) proves hyperscale-qualified 800G suppliers command premium multiples.
POET holds $796 million in cash to fund its Malaysia production ramp, but four of its last five earnings reports missed estimates.
Act now: the ****** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Poet Technologies didn't make the cut. Grab the names FREE today.
POET Technologies (NASDAQ:POET) is a small-cap photonics designer building optical engines for 400G, 800G, and 1.6T data center interconnects, the plumbing hyperscalers need to move AI traffic without melting their power budgets. With a fresh $50 million purchase order from Lumilens in hand, our proprietary model sees room for a sharp re-rating.

#order

Aug 24, 2026, 11:22 am EDT
Shares of Lumentum
LITE
+6.67%
sank on Monday as artificial-intelligence trade stocks broadly came under pressure. The optical-networking company, however, may be in line for a major boost from an AI deal that could be announced ahead of schedule.
LITE
+6.67%
Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

#lumentum #Monday #sank

Jae Kim, SVP and general counsel, sold 7,803 shares of Lumentum Holdings Inc. (NASDAQ:LITE) on August 19 and August 20, according to a recent SEC Form 4 filing.
Metric
Value
Transaction value
$6.6 million

#august #value #lumentum #metric

Vincent Retort, vice president of global reliability and quality at Lumentum Holdings Inc. (NASDAQ:LITE), disposed of 12,566 shares of common stock on August 19 and August 20, according to a recent SEC Form 4 filing.
Metric
Value
Shares sold
12,566

#lumentum

Wupen Yuen, president of global business units at Lumentum Holdings Inc. (NASDAQ:LITE), disposed of 12,565 shares of common stock on August 19 and August 20, according to an SEC Form 4 filing.
Metric
Value
Shares sold (direct)
12,565

#august #lumentum #lite #metric

Michael E. Hurlston, the president and CEO of Lumentum Holdings Inc. (NASDAQ:LITE), disposed of 6,185 shares of common stock on August 19, according to a recent SEC Form 4 filing.
Metric
Value
Transaction value
$5.1 million

#hurlston #lumentum #holdings #lite

Shares of Micron Technology and Sandisk have clocked phenomenal returns over the past year, primarily due to the mission-critical role of the memory chips produced by them for running artificial intelligence (AI) workloads in data centers.
Faster memory chips and larger storage help solve a key bottleneck in AI data centers by enabling the rapid transport of large volumes of data to data center accelerators. As a result, accelerator chips, such as graphics cards and custom processors, don't have to sit idle and waste energy. However, a closer look at the AI infrastructure ecosystem makes it clear that memory isn't the only bottleneck impeding accelerator performance.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The rapid transport of data has created an incredible demand for optical networking components, which use light to quickly transmit massive amounts of data over long distances via fiber-optic cables. Investment banking and brokerage firm Rosenblatt Securities estimates that optical component companies could increase production capacity by 12x between 2025 and 2030.
However, even that won't be enough to meet the booming demand for optical components. Rosenblatt predicts that supply will trail demand by 50% in 2030 despite the massive increase in production through the end of the decade. This explains why optical and photonics components supplier Lumentum Holdings (NASDAQ: LITE) has been experiencing incredible growth in revenue and earnings.

#signal #chips #demand #components

Lumentum Holdings Inc. (LITE), headquartered in San Jose, California, manufactures and sells optical and photonic products. Valued at $72.1 billion by market cap, the company supplies optical chips and subsystems to cloud, AI, and networking providers, as well as advanced lasers for semiconductor, solar, and electric vehicle manufacturing.
Shares of this global leader in optical and photonic technologies have substantially outperformed the broader market over the past year. LITE has gained 720.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.4%. In 2026, LITE stock is up 157.9%, surpassing the SPX's 13.7% rise on a YTD basis.
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#optical #billion

Hurlston said two AI data center links could double a hyperscaler's entire decade of backbone capacity, with Lumentum pump laser shipments set to quadruple.
Hyperscalers are pre-funding Lumentum's buildout through long-term agreements, with CIEN and AAOI up 85% and 296% YTD on the same scale-across demand wave.
Act now: the ***** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Ciena didn't make the cut. Grab the names FREE today.
Shares of Lumentum (NASDAQ:LITE) are trading at $936.95 in Thursday's session, hovering near flat after opening at $925.02. The broader optical complex is mixed as the group digests a heavy earnings week. Ciena (NYSE:CIEN) is up 6.04%, while Coherent (NYSE:COHR) is down 3.66% and Cisco (NASDAQ:CSCO) is off 8.27%.
Despite choppiness in earnings season, optics stocks have generally rallied across the past year. A quote from Lumentum CEO delivered during the company's Q4 earnings call on Monday provides context into why so many stocks that have been flat for a decade are now seeing their share charts inflect up at a record rate.

#stocks #decade #across

AXTI surged on optical sector momentum and 165% YoY revenue growth; TE jumped 10% as new US solar tariffs protect its domestic manufacturing plans.
BW landed a 20-turbine Siemens data center deal and drew a 7.66M share Ameriprise disclosure, but still trades like a turnaround on a weak chart.
Act now: the ****** yst who called NVIDIA in 2010 just named his top 10 AI stocks — and Babcock & Wilcox Enterprises didn't make the cut. Grab the names FREE today.
Three second-derivative AI plays are in focus Friday morning. AXT (NASDAQ:AXTI) is trading higher alongside a broad rally in optics names, T1 Energy (NYSE:TE) is bouncing on the domestic solar policy trade, and Babcock & Wilcox Enterprises (NYSE:BW) is drawing attention around a fresh institutional disclosure. The connective tissue: AI capex is now pulling in materials, power gear, and energy suppliers well beyond the obvious chip names.
AXT is up about 3.1% today, around $79.83, after an Aug. 13 close of $77.45. The catalyst is a sector move. Applied Optoelectronics is up about 5%, Lumentum about 4%, and Corning about 4.5%. AXT makes compound semiconductor substrates, and its indium phosphide wafers are a key input for the high-speed optical transceivers and silicon photonics used in AI data centers. When the optical connectivity trade runs, AXT runs with it as the upstream materials supplier.

#names #axti #enterprises

AXT has surged 351% YTD but is pausing as traders de-risk ahead of Lumentum's closely watched earnings after tonight's close.
Coherent, up 76% YTD, plans to double internal InP wafer output by year-end 2026, a direct demand signal for AXT substrates.
Lumentum has beaten EPS four straight quarters, with past beats averaging a 7% day-of gain and 15% one-week gain.
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Shares of AXT (NASDAQ:AXTI) are drifting lower midday Tuesday, changing hands near $74 and roughly flat on the session. The relatively calm day follows a whip saw previous week that saw shares spike and then drop nearly 17% yesterday. Overall, AXT has rebounded from trading down to $36.97 on July 29th's close.

#coherent #sofi1

By Stephen Nellis
SAN FRANCISCO, July 29 (Reuters) - Eliyan, a startup that aims to ease the bottlenecks in transferring data between AI chips in data centers, ‌said on Wednesday it had raised $145 million in venture funding at a $1 billion ‌valuation.
Cisco Systems, Lumentum and an early investor in networking pioneer Mellanox before its sale to Nvidia backed the raising, according to Santa Clara, California-based Eliyan.
The startup is developing technology aimed at the growing list of companies that are developing their own custom AI computing chips to compete with graphics processing units from Nvidia and Advanced Micro Devices.
Regardless of who makes them, most AI chips today ‌face the same basic problem: They ⁠can process data much faster than they can send or receive it, which leaves pricey chips waiting and idle.

#NVIDIA

Sandisk Corporation (NASDAQ:SNDK) was among Jim Cramer's stock calls on Mad Money, as he advised investors to stick with the largest tech companies in the market. Cramer highlighted how the company's rally got triggered. He remarked:
Now, today was one of those days where the complex of Micron, Seagate, Lumentum, Corning, Western Digital, and Sandisk all took off, and they're all at the top of the S&P 500 leaderboard. These are all companies that make products where there's intense demand right now, mostly from the data center, and there's not enough supply.
This rally got triggered by an **** yst who raised his price target for Sandisk from $1,200 to $2,000. Where was that guy? Was he like hiking in the Andes for a while? I don't know. Come on, wake up. There was a clarion call that there are plenty of price increases still to come for their data storage products. When traders see that, they do three things, okay? They do three things. We're going to get them in the order that they do them. First thing they do, okay, well, they buy the stocks I just mentioned.
Photo by Yiorgos Ntrahas on Unsplash
Sandisk Corporation (NASDAQ:SNDK) sells NAND flash-based storage solutions, including solid-state drives, embedded storage, removable cards, and USB drives.

Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best performing AI stocks over the last 3 years, with a 3Y CAGR of 143.31%. On June 11, JPMorgan **** yst Samik Chatterjee reiterated an Overweight rating and maintained a $1,130 price target, arguing that the recent pullback in optical-networking stocks had created a buying opportunity.
Chatterjee said Lumentum shares had fallen about 15% from their early-June high as investors worried about limited summer catalysts and possible delays in co-packaged optics adoption. He pushed back on those concerns, citing supply-chain checks indicating that Nvidia's large-scale CPO rollout remained on track and may be ahead of schedule. JPMorgan also pointed to growing interest from cloud-service providers and other customers, which could broaden demand beyond Nvidia.
Co-packaged optics places optical engines close to switch chips to increase bandwidth while reducing power consumption in large AI systems. JPMorgan viewed Lumentum's valuation of roughly 25 times estimated 2028 earnings as reasonable, given projected annual earnings growth above 40%. The thesis still depends on deployment schedules, customer concentration and Lumentum's ability to convert product demand into sustained shipments and earnings growth.
Lumentum Holdings Inc. (NASDAQ:LITE) develops optical and photonic technologies for AI and cloud networking, telecommunications, industrial manufacturing and sensing, including lasers, components, modules and optical subsystems.
While we acknowledge the risk and potential of LITE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LITE and that has 10,000% upside potential, check out our report about the cheapest AI stock.

As of roughly noon E.T., the S&P 500 (SNPINDEX:^GSPC) rose 0.56% to 7,524.39, the Nasdaq Composite (NASDAQINDEX:^IXIC) climbed 0.78% to 26,073.17, and the Dow Jones Industrial Average (DJINDICES:^DJI) added 0.24% to 52,473.28 as AI chip strength helped markets stabilize after war‑driven volatility.
Chip and optical‑communication names, including Marvell Technology (NASDAQ:MRVL), Corning (NYSE:GLW), Coherent (NYSE:COHR), and Lumentum (NASDAQ:LITE), were among the day's notable gainers amid sector‑wide demand for communications chips. However, high-valuation AI behemoth Palantir (NASDAQ:PLTR) extended its 29% decline year-to-date, dropping about 4% so far today.
Despite the U.S.-Iran ceasefire being paused for now, and the market facing a growing drumbeat of **** ysts saying we might be in "bubbly" territory, stocks surged higher today, buoyed by the strength of AI and semiconductor stocks. In addition to a handful of **** yst upgrades of semiconductor stocks, SK Hynix's upcoming U.S. ADR offering is estimated to be more than seven times oversubscribed, indicating that immense investor appetite remains in the **** e.
Elsewhere, PepsiCo (NASDAQ:PEP) unofficially kicked off earnings season this morning, delivering mixed earnings that prompted shares to dip roughly 3%. The beverages and snacks giant grew sales by 6% in the second quarter, but said it saw weaker consumer spending in the U.S. due to higher gas prices and broader macroeconomic volatility.
Whether or not the AI and technology industries are indeed in "bubbly territory" as many **** ysts suggest, there are a surprising number of S&P 500 stocks near their 52-week lows, so plenty of opportunities remain despite the indexes trading at or near all-time highs.

Valued at a market cap of $68 billion, Lumentum Holdings Inc. (LITE) is a San Jose, California-based company that manufactures innovative optical and photonic products that power high-bandwidth cloud computing, artificial intelligence (AI) data centers, next-generation telecommunications, and advanced industrial technologies.
Companies valued at $10 billion or more are typically classified as "large-cap stocks," and LITE fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the communication equipment industry. By maintaining deep vertical integration through advanced internal fabrication and forging strategic development partnerships with top-tier semiconductor and AI architecture leaders, Lumentum creates immense technical entry barriers and secures a dominant, sector-leading market position as networks structurally transition from copper to advanced photonics.
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Dow Jones futures edged lower early Wednesday, while S&P 500 futures and Nasdaq futures rose modestly. President Donald Trump issued new Iran threats. The Federal Reserve will conclude its two-day policy meeting on Wednesday afternoon, with new Chairman Kevin Warsh set to give his first post-FOMC press conference.
The stock market had a mixed session, with the Dow Jones hitting a new high while the Nasdaq led other key indexes lower. Many AI stocks retreated, with Lumentum (LITE) and other optical plays hard hit. Chip plays also had a rough day, and software retreated.
However, Google-parent Alphabet (GOOGL), Bloom Energy (BE) and Quanta Services (PWR) are AI stocks showing trendline entries. Cancer testing firm Veracyte (VCTY) broke out.
SpaceX (SPCX) continued to rise in its third day of trading, though closing off Tuesday's high. SPCX rose slightly early Wednesday.
Quanta Services stock is on Leaderboard. Bloom Energy stock and Lumentum are on the IBD 50. The video embedded in the article reviews Tuesday's market action and **** yzes Veracyte stock, Google and Lumentum.

Earlier this week, shares of Lumentum (LITE) rallied from about $806 to $1,049. Nvidia (NVDA) CEO Jensen Huang praised Marvel (MRVL), a maker of optical components, as the next potential trillion-dollar company. Not only did that spark a massive rally in Marvell shares, but it also sparked a rally in other optical-component stocks, like LITE.
Investors are rushing to buy optical networking companies, like LITE, because they’ve become an essential part of the artificial intelligence boom. That’s because optical networking, which transmits data as pulses of light, can deliver far more bandwidth and higher speeds than traditional copper wiring. In addition, Nvidia announced a $2 billion multi-year agreement with LITE in March to help accelerate the adoption of advanced optical technologies. Together with Lumentum, Nvidia is advancing the world’s most sophisticated silicon photonics to build the next generation of gigawatt-scale AI factories,” said Jensen Huang, as quoted in a company press release.
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Dow Jones futures edged higher Sunday night, while S&P 500 futures and Nasdaq futures rose along with crude oil prices. President Donald Trump reportedly has toughened terms for a potential Iran deal framework, according to multiple reports. The U.S. widened AI chip exports to bar Chinese firms' overseas units from accessing cutting-edge Nvidia and Advanced Micro Devices (AMD) chips.
Broadcom (AVGO), Ciena (CIEN), CrowdStrike Holdings (CRWD), Palo Alto Networks (PANW), Argan (AGX) and Credo Technology (CRDO) are notable earnings reports this coming week, with Broadcom stock, Ciena, Argan and Credo all close to buy areas. The jobs report looms Friday.
The stock market hit fresh highs this past week on U.S.-Iran deal hopes. Some AI infrastructure firms, notably optical stocks such as Lumentum (LITE), came under pressure. Software continued to recover on strong earnings reports.
Five members of the elite trillion-dollar club are near buy points: Tesla (TSLA), Google-parent Alphabet (GOOGL), Amazon.com (AMZN), Nvidia (NVDA) and Eli Lilly (LLY).
Nvidia stock, Google, Eli Lilly and Broadcom are on Leaderboard. Google stock, Credo Technology, Argan, CrowdStrike and Broadcom are on the IBD 50. Google, Broadcom, Palo Alto Networks and Amazon stock are on the IBD Big Cap 20. Broadcom stock is on IBD Sector Leaders.