Morgan Stanley Optimistic on Optical Market Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Source: stocktwits
- Market Growth Outlook: Morgan Stanley forecasts that the optical market will grow from approximately $30 billion in 2025 to over $65 billion by 2028, reflecting accelerated investments in AI data centers and increased speeds.
- Investor Confidence Boost: Lumentum's stock rose nearly 1% in overnight trading, and if momentum continues into Tuesday, it will mark a fourth consecutive day of gains, indicating strong optimism among investors and retail traders regarding the company's AI investments.
- Analyst Ratings Positive: Wall Street analysts have an average rating of 'Strong Buy' for Lumentum, with 18 out of 22 analysts rating it 'Buy' or higher, showcasing confidence in the company's future performance.
- Retail Sentiment Shift: According to Stocktwits data, retail sentiment on Lumentum has shifted from 'bearish' a month ago to 'bullish', indicating an increasing expectation for AI optical demand.
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Analyst Views on LITE
Wall Street analysts forecast LITE stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 854.960
Low
147.00
Averages
303.36
High
470.00
Current: 854.960
Low
147.00
Averages
303.36
High
470.00
About LITE
Lumentum Holdings Inc. is an optical and photonic technology that powers the networks and infrastructure behind artificial intelligence (AI), cloud computing, and next-generation communications. Its segments include Cloud & Networking and Industrial Tech. The Cloud & Networking segment products include a comprehensive portfolio of optical and photonic components, modules, and subsystems supplied to cloud and communications network operators and network equipment manufacturers building cloud data center infrastructure, including products for AI and machine learning and data center interconnect (DCI) applications, and communications service provider networks, including products for access (local), metro (intracity), long-haul (city-to-city and worldwide), and submarine (undersea) network infrastructure. The Industrial Tech segment's products include short-pulse solid-state lasers, kilowatt-class fiber lasers, diode lasers, and gas lasers, serving a range of end-market applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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