Wednesday, June 10, 2020

Buying Lumentum Holdings (LITE) @$79.79

Lumentum generated 89% of its revenue from optical communications components last quarter. The remaining 11% came from laser components.Its optical components business sells optical chips to service providers and data center customers, as well as 3D-sensing chips that power advanced cameras and lidar systems in driverless cars. Its laser business sells devices for manufacturing, inspection, and life science purposes.

This is a 5G play. As 5G technology is coming upon us, the need for precise optical component will rise in a big way. 5G will enable infinitely faster download speeds. This in turn, will hasten the adoption of augmented reality which is a huge part of the future of visual tech. 

Data centers, iPhones, VR sets, autonomous vehicles - all growing customers for this company.


1 comment:

  1. Lumentum Holdings has entered into an agreement to snap up Coherent in a cash and stock deal valued at $5.7 billion. Coherent shares rose almost 2% in Wednesday’s pre-market session after closing 30% higher on Tuesday.

    The deal is expected to help Lumentum (LITE) enhance its footprint in the more than $10 billion market for lasers and photonics outside of communications and 3D sensing.