13 AI News and Ratings on Wall Street’s Radar

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8. Lumentum Holdings Inc. (NASDAQ:LITE)

Number of Hedge Fund Holders: 36

Lumentum Holdings Inc. (NASDAQ:LITE) manufactures optical and photonic products for applications in cloud data centers, AI/ML, and industrial tech.

Needham has designated Lumentum (NASDAQ:LITE) as its top 2025 pick for the Networking and Cloud Communication sectors, highlighting growth fueled by increasing AI investments. The firm added Lumentum to its conviction list while maintaining a Buy rating and raising the price target to $110.

The firm expects strong growth in Lumentum’s Datacom business, driven by AI infrastructure expansion, alongside a telecom recovery supported by data center WAN connectivity. Needham also highlighted the expansion of externally modulated laser production as an important catalyst, with mid-2025 capacity increases priced in and additional capacity expected to boost 2026 estimates.

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