Lumentum Holdings Inc. (NASDAQ:LITE) is one of the best US stocks to buy and hold for the next 3 years. On March 26, Lumentum announced plans to establish a new 240,000-square-foot manufacturing facility in Greensboro, North Carolina, dedicated to producing advanced indium phosphide/InP optical devices. The site, acquired from semiconductor chipmaker Qorvo, will focus on manufacturing continuous wave and ultra-high-power lasers essential for large-scale AI data centers.

This expansion strengthens Lumentumโ€™s domestic production capabilities and utilizes a highly skilled local workforce and robust infrastructure. The facility is currently operational and will be retrofitted to support the production of 6-inch InP wafers, with a full production ramp-up expected by mid-2028. Nvidia will serve as a primary customer for the site, supporting the expansion of critical US infrastructure and research through existing strategic agreements.

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Lumentum Holdings Inc. (NASDAQ:LITE) intends to invest hundreds of millions of dollars into the location over the coming years, aiming to enhance supply chain resilience and meet the rising demand for hyperscale cloud and AI networking. This project is expected to preserve and create more than 400 manufacturing and engineering jobs in the Greensboro area.

Lumentum Holdings Inc. (NASDAQ:LITE) is a communication-equipment company that specializes in optical & photonic products through the Cloud & Networking and Industrial Tech segments.

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.

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