Lumentum Holdings Inc. (NASDAQ:LITE<\/b>) is one of the stocks Jim Cramer evaluated, along with the fragile food market<\/b>. Cramer noted that the company is a better performer than Coherent, as he said:<\/p>\n If you\u2019re looking for groups to buy into weakness as rising oil prices crush the stock market, you can do a lot worse than the data center suppliers. Later this month, two optical companies are joining the S&P 500: Coherent, which we spoke to earlier this week, and Lumentum. Now, both of them are getting $2 billion investment from NVIDIA, but Lumentum\u2019s been the better performer. It\u2019s up nearly 900% over the past 12 months, despite an 8% decline today as part of that broader tech-led sell-off.<\/p>\n<\/blockquote>\n Stock market data. Photo by Burak The Weekender on Pexels<\/p>\n Lumentum Holdings Inc. (NASDAQ:LITE) designs and sells optical and photonic products, including lasers and components, for cloud networking, data centers, and industrial applications. Cramer mentioned the stock during the March 9 episode and commented:<\/p>\n Next, a week ago, we learned that NVIDIA was investing $2 billion apiece in a pair of fiber optic plays, Coherent and Lumentum. They both have a lot of exposure to AI infrastructure. Apparently, S&P and NVIDIA have the same style because both those stocks are getting added to the S&P 500\u2026 Lumentum is similar, except that stock has been even hotter. It\u2019s up more than 1,300% from its post-Liberation Day lows. The stock\u2019s a lot more expensive than Coherent on a price-to-earnings basis, higher risk, higher reward. But they\u2019re both plays on optical networking equipment for the data center.<\/p>\n<\/blockquote>\n While we acknowledge the potential of LITE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock<\/b>.<\/p>\n READ NEXT: <\/b>33 Stocks That Should Double in 3 Years<\/b> and <\/b>15 Stocks That Will Make You Rich in 10 Years<\/b>\u00a0<\/b><\/p>\n Disclosure: None. Follow Insider Monkey on Google News<\/b>.<\/b><\/p>\n<\/p><\/div>\n\n
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