LITE is a fantastic AI-infrastructure investment opportunity despite fluctuating profit and a sector-wide share slip. Q4 revenue rose more than 100% year-on-year; about 70% of core AI demand is unmet, with sold-out capacity to early 2029. A $2 billion Nvidia commitment supports its position.

You know, regarding my first stock, I really want to talk about a trend we've noticed recently. So, the stock I'm going to talk about is "Lumentum Holdings ".

So, this is a fundamental requirement for building an artificial intelligence infrastructure, and this is where a company like Lumintum comes in. Lumintom's business model is that it is a business-to-business (B2B) industrial equipment manufacturer.

They design, build, and sell laser chips that specialize in photonics. Lasers and optical transceivers that convert electrical data from computer servers into light beams are at the heart of Lumentum's business, allowing that data to travel through fiber optic cables at such high speeds.

They also have an industrial technology division , where they offer applications such as 3D sensing chips, and high-precision industrial lasers for cutting and welding sheet metal or manufacturing electric vehicle batteries.

But cloud and networking businesses are currently the main driver of Lumintum's growth . Lumintum is essentially a key pillar in the global technology supply chain .

To understand the nature of Lumintom's work and how it is performed, we clearly see tremendous growth in their business. In the fourth quarter results alone, net revenue increased by more than 100% year-on-year.

They continue to substantially exceed Wall Street's expectations .

There was a recent interview with Lumintum CEO Michael Hirston on Bloomberg Television. It was stated that Lumintum is unable to meet approximately 70% of customer demand for its core AI products.

This also means that they cannot fulfill about 30% of their order book for replacement components until 2028, which means that their fully sold-out production capacity has already been extended until early 2029.

It takes about 3 years to build and qualify a completely new semiconductor laser manufacturing facility. Therefore, they are largely safe from many of their competitors who are trying to catch up with them quickly.

They have a $2 billion strategic purchase commitment from Nvidia to secure components for the launch of Blackwell chips. And of course, they also strengthened their long-term market position in several different ways.

They acquired a company called Cloudlite, which greatly accelerated their capabilities in packaging high- speed transceivers.

An event called the OCP World Summit was recently held. During the event , Lumintum showcased its leading optical technologies alongside industry giants such as Corning and Astera Labs.

This technology primarily aims to replace traditional copper traces in motherboards with optical channels. This means that Lumintum is looking to expand its target market to include internal infrastructure for inter- chip communication.

So, it's a really interesting company. We have seen a slight decline in prices, which is something that is generally happening across the artificial intelligence sector. But I truly believe it is a fantastic and exciting investment opportunity within the broader expansion of artificial intelligence.

They still face some fluctuations in the growth of their bottom line profits due to the nature of the mechanisms of this business activity. But, you know, given their order history, the purchase commitments they receive, their inability to fulfill many customer requests due to very high demand, and their position in the value chain within the expansion of artificial intelligence, I think Lumentum Holdings is a company worth watching.

Again, much like Lumentum, it operates within the ongoing bottleneck that the physical infrastructure of AI devices faces.