11 Hot EV Stocks to Buy Now

3. Lumentum Holdings Inc. (NASDAQ:LITE)

Year-to-date Share Price Returns: 20.93%

Number of Hedge Fund Holders: 32

Lumentum Holdings Inc. (NASDAQ:LITE) is a global manufacturer specializing in optical and photonic products and providing its products and services to markets across the Americas, Asia-Pacific, Europe, the Middle East, and Africa. It is among our hot EV stocks to buy now.

It provides essential components that advance the manufacturing and operation of EVs. It focuses on key areas such as sensing, communication, and data processing, all crucial for the evolution of electric and autonomous vehicles.

At a stake value of $702.421 million, 32 hedge funds tracked by Insider Monkey held positions in Lumentum Holdings (NASDAQ:LITE) in the second quarter. As of Q2, Point72 Asset Management is the top shareholder in the company and has a position worth $164.366 million.

One of the important EV-related offerings from the company is its high-performance laser systems and optical components, which are important to 3D sensing technologies used in autonomous vehicles.

The technologies facilitate necessary features like obstacle detection and navigation, which contribute to the safe operation of self-driving cars. Furthermore, the company’s optical communication solutions are designed to enable high-speed data transfer, a necessity for the connectivity features found in modern EVs.

As the production of lithium-ion and solid-state batteries expands, its laser technologies address several manufacturing challenges. The lasers assist in various stages of battery cell production, including electrode cutting, laser patterning, ablation, notching, slitting, and surface structuring.

By implementing these solutions, manufacturers can reduce costs and produce battery cells with higher energy and power density, which is critical for improving the performance and efficiency of EVs.

In 2023, Lumentum Holdings (NASDAQ:LITE) partnered with Lumotive to launch the M30 Reference Design, a cutting-edge sensor technology aimed at improving vehicle perception. The design merges Lumotive’s advanced beam-steering chip with Lumentum’s laser array, specifically engineered for 3D LiDAR systems.

The systems are essential for self-driving cars and other advanced mobility applications. The company’s multi-junction VCSEL arrays included in the M30 design provide significant benefits. They are more energy-efficient than traditional lasers and offer advanced scanning precision, which ensures effective operation in various lighting conditions and over different distances.