This $700 AI Stock Could Be A $1,000 Play — And It’s Not Nvidia

Everyone is chasing Nvidia Corp (NASDAQ:NVDA). But the next leg of the AI trade may not be about chips—it may be about what connects them. That’s where Lumentum Holdings Inc. (NASDAQ:LITE) is starting to stand out.

Trading around $700, the stock now has a $1,040 price target from BNP Paribas analyst Karl Ackerman, implying roughly 47% upside. And the call isn’t based on hype—it’s based on where AI infrastructure demand is actually going.

The AI Trade Is Moving Beyond GPUs

Lumentum sits in a less crowded—but increasingly critical—part of the stack: optical components.

As AI models scale, data centers aren’t just adding more GPUs—they’re upgrading how those GPUs communicate. Ackerman sees that driving demand for:

• 800G and 1.6T optical transceivers
• 100G/200G …

Full story available on Benzinga.com