13 Most Promising EV Stocks to Buy According to Hedge Funds

7. Lumentum Holdings Inc. (NASDAQ:LITE)

Number of Hedge Fund Holders: 32

Lumentum Holdings Inc. (NASDAQ:LITE) is a global manufacturer of optical and photonic products and supplies markets across various regions, including the Americas, Asia-Pacific, Europe, the Middle East, and Africa.

The company plays a crucial role in the EV sector by providing essential components for sensing, communication, and data processing, which are important for developing electric and autonomous vehicles.

Its high-performance laser systems and optical components are significant to 3D sensing technologies in autonomous vehicles and enable features like obstacle detection and navigation. Lumentum’s (NASDAQ:LITE) optical communication solutions facilitate high-speed data transfer and improve connectivity in modern EVs.

As the demand for lithium-ion and solid-state batteries grows, the company’s laser technologies address several manufacturing challenges, as they assist in processes such as electrode cutting and surface structuring. These advancements help manufacturers lower costs and produce battery cells with greater energy and power density.

Lumentum (NASDAQ:LITE) is also playing a significant role in the AI segment as it is working to be a key provider of optical solutions for cloud data centers and AI systems, focusing on improving connectivity and reducing power use. Its strategy involves expanding its customer base, increasing production capacity outside China, and developing new technologies for data connections.

It is focusing on high-speed optical transceivers and has noticed growing demand for its Indium Phosphide lasers, which are essential for expanding data center capabilities. The company is also making progress on 800G and initial 1.6T transceivers and is engaging with several customers in this area. It is expanding its manufacturing capacity, especially in Thailand, to meet this demand.

Lumentum (NASDAQ:LITE) is one of the most promising stocks according to hedge funds. According to our database of 912 hedge funds, 32 hedge funds had a stake worth $702.421 million in Q2.