Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.
The chart shows the growth of an initial investment of $10,000 in Lumentum Holdings Inc. Common Stock, comparing it to the performance of the S&P 500 index.
All prices have been adjusted for splits and dividends.
Lumentum Holdings Inc. Common Stock (LITE) has returned 117.96% so far this year and 1622.31% over the past 12 months. Looking at the last ten years, LITE has achieved an annualized return of 41.03%, outperforming the Benchmark (SPY), which averaged 12.23% per year.
The table below presents the monthly returns of Lumentum Holdings Inc. Common Stock (LITE) with color gradation from worst to best to easily spot seasonal factors.
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 3.28% | 72.86% | -5.40% | 12.52% | ||||||||
| 2025 | 1.07% | -12.28% | -12.71% | -4.82% | 16.84% | 30.22% | 18.40% | 27.90% | 27.25% | 26.58% | 55.81% | 17.02% |
| 2024 | 5.65% | -12.32% | -3.15% | -8.05% | 0.46% | 15.23% | 2.27% | 10.53% | 11.19% | 0.49% | 37.74% | -3.72% |
| 2023 | 15.13% | -10.30% | -0.09% | -10.37% | 9.64% | 7.16% | -8.95% | 5.00% | -16.87% | -13.75% | 9.38% | 22.85% |
| 2022 | -4.35% | -1.89% | -0.84% | -16.90% | 6.46% | -8.24% | 14.06% | -7.04% | -16.61% | 7.05% | -27.05% | -5.15% |
| 2021 | -1.26% | -6.11% | 0.56% | -7.06% | -4.60% | 3.00% | 1.83% | 3.00% | -3.99% | -1.57% | 5.32% | 19.85% |
| 2020 | -6.74% | 1.97% | -6.65% | 13.96% | -7.46% | 11.06% | 13.55% | -8.51% | -11.89% | 8.69% | 3.13% | 9.03% |
| 2019 | 18.48% | 1.22% | 12.36% | 8.60% | -35.71% | 32.40% | -2.08% | -2.11% | -3.16% | 16.62% | 16.04% | 7.16% |
| 2018 | -6.18% | 32.61% | 4.08% | -20.05% | 16.80% | -2.69% | -9.37% | 25.74% | -11.77% | -9.82% | -21.10% | -10.62% |
| 2017 | -3.68% | 19.22% | 14.36% | -19.76% | 32.37% | -2.23% | 8.87% | -9.90% | -5.07% | 15.77% | -13.52% | -8.51% |
| 2016 | -5.81% | 0.60% | -4.91% | 24.95% | 15.79% | 18.53% | -19.90% | 19.35% | -3.62% |
The charts below present risk-adjusted performance metrics for Lumentum Holdings Inc. Common Stock (LITE) and compare them to a Benchmark (SPY). These indicators evaluate an investment's returns against its associated risks.
The Sharpe ratio helps investors understand how much return they're getting for the level of risk taken. A higher Sharpe ratio indicates better risk-adjusted performance, meaning more reward for each unit of risk.
These values reflect how efficiently the investment has delivered returns relative to its volatility over different time periods. All figures are annualized and based on daily total returns.
The chart below shows the rolling Sharpe ratio of LITE compared to the benchmark. This view highlights how the investment's risk-adjusted performance has changed over time.
The current Lumentum Holdings Inc. Common Stock volatility is 7.72%, representing the standart deviation of percentage change in the investments's value, either up or down over the past month. The chart below shows the rolling one-month volatility.
The Drawdowns chart displays portfolio losses from any high point along the way. It shows the maximum percentage drop from a peak to a trough over a specified period, indicating the risk of significant losses.
Although chart shows positive values, it represents the percentage drop from the peak, so a value of 10% means the portfolio has dropped 10% from its highest point.
The income statement provides a summary of a company's revenues, expenses, and profits over a specific period. It shows how much money the company earned (revenues) and how much it spent (expenses), leading to the net income or profit. This statement is crucial for understanding a company's financial performance and profitability.
| 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Liabilities And Equity (USD) | 4.22B | 3.93B | 4.63B | 4.16B | 3.55B | 3.29B | 2.72B | 1.58B | 1.23B | 726.30M |
| Temporary Equity (USD) | - | - | - | - | - | - | - | 35.80M | 35.80M | 35.80M |
| Equity Attributable To Parent (USD) | 1.13B | 957.30M | 1.36B | 1.88B | 1.97B | 1.75B | 1.50B | 926.10M | 618.80M | 497.40M |
| Equity Attributable To Noncontrolling Interest (USD) | - | - | - | - | - | - | - | - | - | - |
| Equity (USD) | 1.13B | 957.30M | 1.36B | 1.88B | 1.97B | 1.75B | 1.50B | 926.10M | 618.80M | 497.40M |
| Long-term Debt (USD) | - | - | - | 2.41B | 1.53B | 1.54B | - | 456.70M | 457.30M | - |
| Noncurrent Liabilities (USD) | 2.69B | 2.71B | 2.64B | 1.57B | 914.20M | 1.26B | 925.50M | 405.60M | 394.10M | 19.40M |
| Other Current Liabilities (USD) | 109.70M | 106.90M | 425.00M | 505.20M | 493.40M | 78.80M | 90.90M | 56.00M | 41.90M | 28.90M |
| Wages (USD) | 57.90M | 36.10M | 39.40M | 54.60M | 54.30M | 53.40M | 42.30M | 31.50M | 27.50M | 26.50M |
| Accounts Payable (USD) | 225.20M | 126.30M | 169.40M | 156.70M | 116.90M | 150.80M | 160.80M | 126.50M | 114.80M | 118.30M |
| Current Liabilities (USD) | 392.80M | 269.30M | 633.80M | 716.50M | 664.60M | 283.00M | 294.00M | 214.00M | 184.20M | 173.70M |
| Liabilities (USD) | 3.08B | 2.97B | 3.28B | 2.29B | 1.58B | 1.54B | 1.22B | 619.60M | 578.30M | 193.10M |
| Other Non-current Assets (USD) | 2.04B | 1.72B | 1.40B | 867.30M | 873.60M | 925.80M | 555.10M | 147.40M | 29.10M | 53.40M |
| Intangible Assets (USD) | 465.10M | 617.50M | 459.20M | 155.70M | 241.20M | 316.80M | 395.40M | - | - | - |
| Fixed Assets (USD) | - | - | - | - | - | - | 433.30M | 306.90M | 273.50M | 183.40M |
| Noncurrent Assets (USD) | 2.50B | 2.34B | 1.85B | 1.02B | 1.11B | 1.24B | 1.38B | 454.30M | 302.60M | 236.80M |
| Other Current Assets (USD) | 1.25B | 1.19B | 2.37B | 2.89B | 2.24B | 1.86B | 1.07B | 954.10M | 772.80M | 355.20M |
| Prepaid Expenses (USD) | - | - | - | - | - | - | 32.40M | 19.50M | 12.30M | 33.70M |
| Inventory (USD) | 470.10M | 398.40M | 408.60M | 250.10M | 196.40M | 188.90M | 228.80M | 153.60M | 145.20M | 100.60M |
| Current Assets (USD) | 1.72B | 1.59B | 2.78B | 3.14B | 2.44B | 2.05B | 1.33B | 1.13B | 930.30M | 489.50M |
| Assets (USD) | 4.22B | 3.93B | 4.63B | 4.16B | 3.55B | 3.29B | 2.72B | 1.58B | 1.23B | 726.30M |
Q1 2026 marked a dramatic market shift with oil surging 84% while Bitcoin plummeted 23%, signaling a rotation away from mega-cap growth toward real assets and energy. AI infrastructure plays like SanDisk and Lumentum soared on strong demand, while richly valued software and speculative growth stocks faced significant de-rating. The quarter demonstrated that traditional hedges and narratives are no longer reliable, with cash flow and tangible assets becoming increasingly important.
The S&P 500 completed its quarterly rebalancing with four new additions and four removals effective March 23, 2026. Three AI-related stocks—Lumentum, Coherent, and Vertiv—joined the index alongside EchoStar. These companies have shown strong recent performance driven by data center buildout trends, including optical networking and cooling solutions. NVIDIA's $2 billion investments in Lumentum and Coherent underscore the importance of these technologies for future data center infrastructure.
NVIDIA's $2 billion investments in photonics companies Coherent and Lumentum signal a strategic shift toward photonics technology to address AI infrastructure bandwidth limitations. Both companies have seen significant stock rallies, with Coherent up 45% YTD and Nova Ltd., another photonics-adjacent firm, also up 45% YTD. While valuations have stretched considerably, strong fundamentals and long-term partnerships position these companies as critical players in AI infrastructure development.
Lumentum and Western Digital have outperformed Micron Technology in 2026, with gains of 90% and 77% respectively. Lumentum benefits from strong demand for optical and photonic products used in AI data centers, with revenue up 62% and earnings up 367% year-over-year. Western Digital is capitalizing on surging HDD demand for AI storage, with revenue up 26% and earnings doubled, while being sold out of HDD capacity through 2026 and securing long-term agreements with major customers.
Tower Semiconductor surged 31.5% this week driven by AI infrastructure enthusiasm and silicon photonics growth. The company announced a partnership with Oriole Networks for AI networking solutions and unveiled new BCD power management technology. Industry momentum was bolstered by Lumentum's impressive long-term revenue forecast at the Optical Fiber Communications Conference, signaling explosive growth potential for silicon photonics in AI data centers.
Markets sold off sharply on March 19, 2026, as Iranian strikes on Gulf energy infrastructure pushed crude oil above $100/barrel, triggering stagflation concerns. The S&P 500 hit its lowest close since mid-November, while the Federal Reserve's hawkish stance and rising inflation projections pushed Treasury yields higher. Gold plummeted 4.5% as real yields climbed, while energy stocks surged and precious metals miners collapsed.
The article argues that optical networking infrastructure represents a critical investment opportunity in AI, as traditional copper-based data center wiring cannot handle the bandwidth demands of modern AI systems. Lumentum Holdings and Nokia are positioned as key beneficiaries of this multi-year optical upgrade supercycle, with Lumentum showing 65.5% YoY revenue growth and Nokia expanding its optical networks division by 17% YoY.
Ardsley Advisory Partners LP sold 440,000 shares of Hut 8 (55% of its position) worth $19.4 million in Q4 2025, likely taking profits after the stock surged 163% over the past year from April lows near $10 to above $50. Despite strong 45% revenue growth, the company's expensive 26x price-to-sales ratio and net losses may have prompted the fund's exit.
Nvidia has delivered monster earnings with $216 billion in revenue (up 65% YoY) driven by accelerating AI infrastructure investments from hyperscalers. Despite historic 977% gains since ChatGPT's launch, the stock is trading near its cheapest valuation in the AI era. The company is diversifying beyond data centers through strategic partnerships in AI PCs, enterprise analytics, telecommunications, and edge computing, positioning it for continued explosive growth across emerging AI applications.
Nvidia has committed over $36 billion to AI partners and suppliers in just over a month, including a $30 billion commitment to OpenAI and $2 billion investments each in Coherent, Lumentum, and Nebius Group. The spending spree suggests Nvidia is strategically shaping the entire AI data-center ecosystem around its chips, leveraging its estimated $180 billion in fiscal 2027 free cash flow.
