Lumentum Jumps 121% and Applied Materials Gains 67% in 2026 as AI Infrastructure Spending Surges
Updated
Updated · The Motley Fool · May 30
Lumentum Jumps 121% and Applied Materials Gains 67% in 2026 as AI Infrastructure Spending Surges
4 articles · Updated · The Motley Fool · May 30
Lumentum shares have climbed 121% in 2026 and Applied Materials is up 67%, far outpacing Nvidia’s 12% gain as investors reward suppliers tied more directly to AI build-outs.
Lumentum’s rally is being driven by data-center demand for optical and photonic components: revenue rose 72% to just over $2 billion in the first nine months of fiscal 2026, while EPS increased 4.5-fold to $5.27.
Its current-quarter revenue guidance of $985 million implies more than 100% growth from $480.7 million a year earlier, helped by higher-margin data-center products and a market Cignal AI sees reaching $30 billion by 2029.
Applied Materials is benefiting from stronger AI chip manufacturing demand, with fiscal second-quarter revenue up 11% to $7.91 billion and EPS up 20% to $2.86 after a weaker prior quarter.
The company expects fiscal third-quarter revenue of $8.95 billion and non-GAAP EPS of $3.36, with management forecasting more than 30% growth in its semiconductor equipment business this year as foundry, DRAM and advanced packaging spending expands.
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