By Simply Wall St
Publication Date: 2026-04-25 15:05:00
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Nvidia’s new multiyear partnership with Lumentum Holdings (LITE), including a reported US$2b investment in manufacturing and R&D for AI data center optics, has pushed the stock firmly into focus for many investors.
See our latest analysis for Lumentum Holdings.
The Nvidia partnership headlines sit on top of an already very strong run, with a 30 day share price return of 13.44% and year to date share price return of 128.34%. The 1 year total shareholder return is extremely high, pointing to powerful momentum that shorter term swings around ETF launches and AI news have not derailed.
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With Nvidia committing US$2b, annual revenue of US$2,105.2m and an intrinsic value model implying a 62% discount, the real question now is whether Lumentum is still mispriced or if the market is already counting on years of growth.
At a last close of $881.64 versus a narrative fair value of $773.35, Lumentum is framed as richly priced, with expectations tightly linked to AI optics growth and execution.
Rapid acceleration of demand for advanced optical components due to global AI, cloud computing, and hyperscale data center growth is positioning Lumentum for sustained top-line…
