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​Lumentum Holdings Inc. (NASDAQ:LITE) is among the Stocks That Will Double in the Next 5 Years. On April 10, the CEO of Lumentum Holdings Inc. (NASDAQ:LITE), Michael Hurlston, told Bloomberg News that they are sold out through 2027 due to increased demand.

​He noted that they are unable to keep up with the demand despite adding more capacity, such as a new fab factory in the US and other initiatives in Japan. He noted that the company is adding more capacity in Japan, where the output has been up to the mark. However, despite increased output, the supply is falling short of the demand due to increased pressure from hyperscalers.

​As a result of this surging demand, the stock, despite all the geopolitical environment, has gained more than 130% on a year-to-date basis. Moreover, the street also remains bullish on the stock, with 76% of the 25 analysts covering the stock maintaining a Buy rating.

​Recently, on April 10, Aletheia Capital raised the price target on Lumentum Holdings Inc. (NASDAQ:LITE) from $500 to $1,225, while maintaining a Buy rating on the shares. The firm noted AI growth and increased demand as key tailwinds for the company’s future performance.

​Lumentum Holdings Inc. (NASDAQ:LITE) designs and manufactures innovative optical and photonic products and technologies that power the networks and infrastructure behind AI, cloud computing, and next-generation communications.

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.

READ NEXT: 7 Hot Growth Stocks to Invest in Right Now and 7 Ridiculously Cheap Stocks to Buy According to Wall Street Analysts. 

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