Analysts are sounding the alarm on Lumentum Holdings (NASDAQ: LITE), warning of a potential 10% correction despite the stock's meteoric 132% surge this year. The dramatic rise followed Nvidia's $2 billion investment to expand production of critical AI infrastructure components like photonics and lasers for data centers.

New Lumentum Stock Price Prediction (LITE)

Lumentum stock opened Friday’s bell at $894 after a sustained sell-off from reaching a high of $920. Leading financial firms are bullish on LITE’s prospects, indicating that the sell-off is a buying opportunity. The price prediction indicates the equity has further upside, which investors must make use of. AI firms are the hottest trend now that can deliver double-digit returns to traders.

Mizuho Financial Group predicts Lumentum stock is set for an upward surge with a target of $930. The firm maintained an Outperform rating, predicting that its CPO penetration will grow approximately 4% in 2026. Mizuho gave a long-term bullish view for LITE in a note to clients explaining that it could see a compound annual growth rate of 153% from 2025 to 2029.

Traders who take an entry position now can offload LITE when the equity reaches the $930 mark. That could be a profit of nearly $35 per share. The company’s expansion of its manufacturing facility in Greensboro, North Carolina, will further boost its output capacity. The demand for the components is high, leading to billions in revenues in the next five years. Traders can make the most out of the situation till 2030, as the AI sector booms.