Lumentum $LITE ( ▲ 5.84% ) is having the kind of month most AI-adjacent names can only dream about. Shares of the optical and photonics supplier have ripped nearly 50 percent in November as both Wall Street and retail traders pile in, hyped by its growing role as a key Google $GOOGL ( ▼ 1.08% ) partner.
Unlike the wobblier fringe stocks riding the AI boom, Lumentum actually has the fundamentals to back up the run. The company kicked off the month with Q1 2026 results that topped analyst expectations and followed it up with Q2 guidance that was comfortably ahead of forecasts.
Its fiscal 2025 numbers showed Google as Lumentum’s second-largest customer at 15.4 percent of net revenue, right behind networking player Ciena $CIEN ( ▲ 2.06% )
at 16 percent. Bloomberg’s latest estimates suggest those contributions have grown even more, with Ciena now accounting for 22 percent of sales and Google close behind at 21 percent.
Retail traders have noticed. JPMorgan’s Arun Jain says they have been flooding into the stock throughout November. Wall Street is joining the party too. Needham’s Ryan Koontz bumped his price target to 290 dollars from 235, and Rosenblatt’s Mike Genovese recently called Lumentum “a must own AI stock.”
The “Google halo effect” might be the new “Nvidia halo effect,” and Lumentum is soaking up every bit of it.