By Harsh Chauhan
Publication Date: 2026-05-30 19:13:00
Artificial intelligence (AI) pioneer Nvidia is having an underwhelming 2026 so far despite delivering outstanding results quarter after quarter. Shares of the chipmaker have appreciated only 12% this year, well below the 74% jump in the PHLX Semiconductor Sector index.
However, shares of Lumentum Holdings (LITE 0.66%) and Applied Materials (AMAT +0.03%) have been flying high in 2026. While Lumentum stock has gained 121% this year, Applied Materials has also jumped by an impressive 67%. Both companies have benefited from massive investments in AI infrastructure.
Let’s take a closer look at the reasons why these two stocks have been in fine form on the market so far this year and check why they are likely to deliver more upside.
Image source: Getty Images
AI is driving phenomenal growth at Lumentum Holdings
Lumentum Holdings manufactures optical and photonic components, such as lasers, transceivers, and amplifiers, which are deployed in the cloud, networking, and industrial markets. The company’s products enable high-speed connectivity in data centers, which explains why they are in high demand from hyperscalers to reduce latency when transmitting large datasets.
Today’s Change
(-0.66%) $-5.66
Current Price
$854.96
Key Data Points
Market Cap
$67B
Day’s Range
$822.50 – $869.00
52wk Range
$72.29 – $1085.68
Volume
6.4M
Avg Vol
6.5M
Gross Margin
35.36%
Lumentum’s revenue and earnings growth have taken off amid AI-fueled demand from data centers. Its revenue in the first nine months of fiscal…
