Billionaire George Soros’ 10 Small-Cap Stocks with Huge Upside Potential

4. Lumentum Holdings Inc. (NASDAQ:LITE)

Lumentum Holdings Inc. is a manufacturer and seller of photonic and optical products. It operates in the Industrial Tech and Cloud & Networking segments. The company provides tunable small form-factor pluggable transceivers, high-speed transceivers, coherent dense wavelength division multiplexing pluggable transceivers, and other products. According to the median analyst price target, the stock still has an upside of 69.44%.

The investment firm Jefferies started coverage of Lumentum last month. Jefferies assigned a Buy rating to the stock, lowering its price target from $110 to $100. Analysts expect substantial growth in data centers, powered by AI’s need for faster interconnect speeds. This will boost demand for networking solutions.

The company also confirmed its target of reaching $500 million in quarterly revenue by the end of 2025, fueled by cloud and AI market trends. For Q3 2025, growth is anticipated in Cloud and Networking products. However, Industrial Tech revenue is projected to decline. Management expects Q3 revenue to be in the range of $410 million and $425 million. The firm predicts demand expansion for EML chips in 2026 and plans to extend capacity to meet high demand.