Lumentum update highlights AI as growth driver, says Susquehanna

Susquehanna analyst Christopher Rolland said perhaps the most interesting opportunity illuminated during Lumentum’s (LITE) OFC update was on the technology front; its Nvidia (NVDA) AI win. This is a new market for Lumentum, with unit deployments expected to exceed ethernet market volume within a few years. Overall, the update was positive on the technology front, particularly around AI, but modestly disappointing around the mid-term model. Susquehanna maintains its Possitive rating and $70 price target on Lumentum shares.