Lumentum Holdings (LITE)

Competitor to COHR. Makes the lasers for laser-based communication. Very excited about it. Very attractive on this pullback. You need to be patient until 2027-28, when the real upside in optical components comes through.

At the core of the idea that data centres need to scale up, out, and across. This name focuses on scaling out. Laser and optical components that move data between chips inside the data centres. 

You have to listen when NVDA speaks, and it invested $2B in this name plus put in a bunch of product orders. No dividend.

Up 90% in Q1 and one of the best performers on the S&P. These fiber-optic stocks will continue to rise as long as the data centre build out continues.

Is +1,300% since last April. A play on optical networking equipment for the data centre.

It has gone parabolic. If he enters now, he would get killed. Would sell, not buy now.

It's had such a run, up 99% in the last 3 months.

Despite a nice bounce today, they've missed earnings too many times.

The caller asked for an evaluation of Lumentum in the context of its acquisition of Oclaro (OCLR-O). He says that this stock’s chart looks terrific. It shows a lot of momentum, good earnings growth momentum, the stock shows a lot of volume on its upside breakout. He can see this going to $80 quickly and expects it to do well over a 3-to-6-month time frame. However, you should set an exit point for every trade. For this stock, he recommends that you start reducing if it drops to $65 and get completely out if it reaches $60. He would also reduce if it pulls back below its 20-day moving average.