A new AI infrastructure stock has delivered shocking 132% gains year-to-date, dramatically outperforming market leader Nvidia. Lumentum Holdings (NASDAQ: LITE), a critical supplier of photonics and lasers for AI data centers, has turned a $1,000 January investment into $2,320 by April 2026—a phenomenal return in under 100 days as AI service providers rally while tech titans cool.
While market commentators say that Nvidia stock has peaked, AI service-based firms are driving the upward push. The rise in Lumentum Holdings stock comes after Nvidia noticed its importance and invested $2 billion to purchase its ultra-high-power lasers and capacity rights for the next-gen optical interconnects.
Nvidia’s strategic investment in Lumentum Holdings is among the catalysts for the stock to soar this year. The deal funded the AI-based company to set up a new manufacturing plant in Greensboro, North Carolina. This will boost its manufacturing capacity, delivering advanced laser components and optical networking products to data centers. LITE’s rise reflects a broader market confidence where AI-based firms, such as Vertiv and SanDisk, are receiving bigger investments.
In addition, Lumentum Holdings received further support as the stock saw an inclusion in the S&P 500 index on March 23. This triggered further buying from retail investors as the potential for the equity is huge. After the S&P 500 index inclusion, trading volumes in LITE were up by over 40%. The increased capital funding from Nvidia gave Lumentum Holdings stock the much-needed momentum.
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