Lumentum rises after Needham raises PT

Shares of photonic products maker Lumentum Holdings LITE.O rise 5.3% to $731.1 in premarket trading

Needham raises PT on stock to $850 from $550, representing a ~22% upside to stock's last close

On Monday, Nvidia said it will invest $2 billion in LITE to support research and development, future capacity and operations

Needham says investment "affirms the critical supply of optical lasers in the data center as a core building block of AI infrastructure"

We believe LITE sustains strong leadership in InP lasers and expect the company to maintain an edge in volume orders for CPO (co-packaged optics)- Needham

19 of 23 brokerages rate the stock "buy" or higher, 4 "hold"; their median PT is $580

Stock had gained more than four-fold in 2025