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.


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