LITE/Cloud & AI Networking (800G/1.6T Transceivers, OCS)

Cloud & AI Networking (800G/1.6T Transceivers, OCS)

$450/share(64% of LITE)anchored

Lumentum is the only volume supplier of 200G-per-lane EML laser chips, commanding ~50-60% market share in the critical component powering 800G and 1.6T optical transceivers for AI data centers. Q2 FY26 revenue surged 65% YoY to $665.5M. Cloud & Networking represents ~90% of revenue. The NVIDIA $2B investment validates Lumentum's strategic importance. OCS (Optical Circuit Switches) backlog exceeds $400M. The 1.6T transition doubles EML content per transceiver. The debate: is this a structural shift or a cyclical peak?

Q2 FY26 revenue $665.5M, up 65% YoY, with Q3 guided to ~$770M+ (~85%+ YoY)

LITE Q2 FY26 Earnings
Scenario Model$450/share