Analysts Think This Tech Stock Will Power the Next Wave of Hyperscaler Growth. They Just Gave It a New Street-High Price Target.

Lumentum Holdings (LITE) just received a major vote of confidence from Wall Street as Mizuho initiated coverage with an “Outperform” rating and a street-high price target of $290. The optical components maker is emerging as a critical player in the buildout of artificial intelligence infrastructure, commanding over 50% market share in indium phosphide lasers that power advanced AI servers. 

Mizuho analyst Vijay Rakesh believes the company will ride a massive wave as hyperscalers transition from current 400G and 800G bandwidth to 1.6T and 3.2T connections. This shift is unavoidable as copper cables hit physical limits for reach and power consumption, forcing data center operators toward optical solutions. Lumentum's laser revenue could more than double from roughly $1 billion in fiscal 2025 to $2.2 billion by fiscal 2028, representing 54% of total company revenue.