MP Materials Stock Soars 225% with Defense Department Support
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Should l Buy LITE?
Source: Benzinga
- Strategic Rare Earths: MP Materials has seen its stock price surge by 225.84% since January 20, 2025, as the Department of Defense became its largest shareholder, emphasizing the critical role of rare earths in national security.
- Storage Market Scarcity: Western Digital's shares have risen nearly 245% over the past year due to surging demand from cloud providers for high-capacity enterprise storage, tightening supply and improving pricing, reflecting the urgent need for storage in AI data centers.
- AI Memory Champion: Micron Technology's stock has rallied over 250% since Trump's return to the White House, driven by a shortage of high-bandwidth memory, which has regained pricing power and directly benefited from AI training and inference workloads, showcasing its successful transition from commodity exposure to scarcity-driven infrastructure.
- Surge in Optical Components: Lumentum's shares have soared 277% in the past year as demand for high-speed optical components exploded, becoming essential for connecting AI accelerators and massive data flows, with the market now viewing it as a critical player in AI infrastructure.
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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: 764.650
Low
147.00
Averages
303.36
High
470.00
Current: 764.650
Low
147.00
Averages
303.36
High
470.00
About LITE
Lumentum Holdings Inc. is a designer and manufacturer of optical and photonic products enabling optical networking and laser applications worldwide. 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 artificial intelligence and machine learning (AI/ML) 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 products include solid-state lasers, kilowatt-class fiber lasers, diode lasers, ultrafast lasers, and gas lasers, which address applications in numerous end-markets.
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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