Lumentum: This Optical Shortage Is Getting Even Bigger

Lumentum remains roughly 30% behind EML demand, while ultra-high-power laser demand is accelerating faster than new manufacturing capacity. OCS shipments doubled sequentially, with quarterly revenue moving above $100 million, and management targeting more than $400 million in H2. Pump laser shipments increased over 80% YoY, while management expects roughly fourfold growth supported by multi-year customer agreements.

LITE trades at 42.8x FY1 earnings, but that multiple compresses to 21.1x FY3 as expected earnings rapidly expand.