Lumentum Just Got a New Street-High Price Target. Should You Buy the Laser Stock Fueling the AI Boom?

AI-related hardware stocks have been among 2025’s hottest stories, but not every supplier is positioned to ride the wave. While GPUs and memory names hog headlines, optical and laser companies quietly power the data center plumbing that lets massive AI models talk to each other, and that infrastructure is starting to attract Wall Street attention.

Lumentum (LITE) has suddenly landed in the spotlight after Mizuho just raised its one-year price target to $325, a Street high, citing Google’s (GOOG) (GOOGL) ramp-up of Tensor Processing Units (TPUs) as a big catalyst. Analysts see Lumentum as a key beneficiary of expanding AI infrastructure at Meta Platforms (META) and Amazon (AMZN), with its optical networking gear positioned to support faster, more efficient data movement.