The Best "Picks and Shovels" Artificial Intelligence (AI) Growth Stock on the Nasdaq Right Now
Lumentum Holdings, a San Jose-based photonics company, makes components that convert electrical signals in AI data centers into optical signals, and has received a $2 billion investment from Nvidia to grow its manufacturing capacity. Lumentum demonstrated a suite of technologies at the Optical Fiber Communication Conference 2026, showcasing its capabilities in supporting next-generation AI clusters.
Lumentum Holdings, a San Jose-based photonics company, produces lasers, optical transceivers, and photonic components for data centers, enabling high-speed communication between chips, servers, and racks. Nvidia invested $2 billion in Lumentum in March, as part of a multiyear strategic partnership to accelerate innovation in advanced optics technologies for AI infrastructure. Lumentum demonstrated its capabilities at the Optical Fiber Communication Conference 2026, showcasing a breakthrough optical scale-up demonstration using VCSEL technology. The company's optical interconnects can support the massive parallelism required by next-generation AI clusters. Lumentum's order pipeline could be affected if hyperscaler AI spending slows, as it operates in a historically cyclical component market.
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