: Lumentum (LITE.US) teams up with NVIDIA Corporation and Alphabet Inc. Class C to pave the way for a bullish trend, significantly raising the target price to $1040.

According to the stock research department of the French bank in Paris, the recent design orders won by Lumentum (LITE.US), including 100G and 200G EML chipsets in the 800G and 1.6T optical modules that are about to start mass production, could potentially push the company's stock price over $1000 per share. The French bank in Paris has raised Lumentum's target stock price from $625 to $1040, and reiterated its "outperform" rating. Analyst Karl Ackerman of the French bank in Paris stated during Lumentum's investor briefing on March 17: "Lumentum convincingly outlined its goal to achieve an annualized earnings per share of over $30 by the end of 2028, thanks to the addition of new design orders for its leading 800G and 1.6T transceiver EML chipsets, as well as the 400mW ultra-high-power laser used for co-packaged optical switches for NVIDIA Corporation (NVDA.US), and its self-developed MEMS-based optical switch, which we believe is mainly used for Alphabet Inc. Class C's (GOOGL.US) TPU 3D Taurus network topology." He also pointed out: "Lumentum explicitly stated that with the start of production of its newly acquired Qorvo factory in Greensboro in early 2028, the additional EML capacity will increase its annual sales to around $8 billion with an operating profit margin of about 40%, which is expected to further enhance its targets." Ackerman added: "We have raised our performance expectations for the coming year to reflect the company's newly won multi-year, multi-billion dollar optical switch project. In addition, due to NVIDIA Corporation's recent investment of $20 billion to ensure long-term capacity, we expect an increase in production of the 400mW ultra-high-power laser, as NVIDIA Corporation plans to expand the capacity of co-packaged optical switches in the upcoming Vera Rubin artificial intelligence infrastructure." The French bank in Paris has raised Lumentum's earnings per share estimate for 2027 from $19.40 to $25.89, and its implied earnings per share estimate for 2028 is now $38.95.