Billionaire Steve Cohen’s Top 15 Stock Picks

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7. Lumentum Holdings Inc. (NASDAQ:LITE)

Number of Hedge Fund Holders: 36 

Point72 Asset Management’s Stake: $252.8 million  

Lumentum Holdings Inc. (NASDAQ:LITE) carries out the manufacturing business of optical, photonic and commercial laser products. The following reasons highlight the company’s strength as an investment target. Firstly, as per the report of the third quarter of 2024, net revenue was $1.36 billion and GAAP operating loss of 31.9%, non-GAAP operating margin of 2.8%. Also, GAAP diluted net loss per share of $8.12; non-GAAP diluted net income per share of $1.01. This demonstrates the company’s operational efficiency and suggests a better performance when excluding non-recurring or non-cash items, which may attract more investment. Secondly, the company provides advanced optical solutions for data centers, supporting artificial intelligence (AI) applications, and for this reason, the company has secured record orders for datacom chips used in data center applications. This may hold investment potential as the company intends to meet the growing demand for AI and cloud computing services, presenting a substantial market opportunity for Lumentum’s high-performance optical products. Moreover, the company has announced its participation in the European Conference on Optical Communication (ECOC) 2024 in Frankfurt, Germany, from September 23 – 25. At Stand #A24, Lumentum will showcase its latest photonic solutions, reinforcing its commitment to powering the artificial intelligence (AI) revolution through unparalleled speed, scalability, and energy efficiency, which may hold investment opportunities. In a nutshell, these features position the company as a rewarding investment choice.

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