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Is LASR a good stock to buy? We came across a bullish thesis on nLIGHT, Inc. on r/ValueInvesting by Super_Collection_592. In this article, we will summarize the bulls’ thesis on LASR. nLIGHT, Inc.'s share was trading at $ 70.43 as of April 17th. LASR’s forward P/E was 243.90 according to Yahoo Finance.

Photo by L N on Unsplash

nLIGHT, Inc. (LASR) is positioned as a high-power laser platform company with increasing strategic exposure to aerospace & defense, directed energy systems, and advanced optical sensing, alongside its legacy industrial and microfabrication applications. The company operates through two core segments: Laser Products, which accounted for 68.6% of 2025 revenue and delivered 39.2% gross margins, and Advanced Development, which represented 31.4% of revenue but carried lower 12.4% margins due to its R&D and prototype-heavy nature.

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In 2025, nLIGHT demonstrated a clear operational inflection, with revenue rising 31.6% year over year to $261.3 million, gross margins expanding sharply to 29.8%, and Adjusted EBITDA turning positive at $23.5 million, reflecting meaningful operating leverage as defense-driven demand scaled. Aerospace & Defense now dominates the business at 67% of revenue, growing 60% year over year, highlighting strong traction in directed-energy and laser sensing programs tied to U.S. government and prime contractors such as Northrop Grumman and Raytheon Technologies.

The investment thesis is anchored in the potential conversion of Advanced Development programs into high-margin Laser Products revenue, where embedded design wins and long qualification cycles can create durable switching costs and program visibility. With $161.6 million in backlog and $184.4 million in unfunded government contract value, nLIGHT has substantial near-term and medium-term revenue visibility, while its vertically integrated semiconductor and fiber laser stack strengthens its technological moat in mission-critical applications.

The February 2026 equity raise of approximately $201 million further enhances balance sheet flexibility to scale defense production capacity. While customer concentration and government dependency remain risks, the accelerating shift toward productized defense laser deployments and expanding directed-energy adoption support a bullish re-rating scenario, where sustained margin expansion and backlog conversion could drive significant upside in LASR.

Previously, we covered a bullish thesis on Photronics, Inc. (PLAB) by Virtual_Seaweed7130 in April 2025, highlighting semiconductor photomask leadership, deep discount to tangible book value, and AI-driven wafer demand upside. PLAB’s stock price has appreciated by approximately 173.79% since our coverage. Super_Collection_592 shares a similar view but focuses on nLIGHT, Inc. (LASR), emphasizing defense-led growth, margin expansion, and backlog conversion as key re-rating drivers.

NLIGHT, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held LASR at the end of the fourth quarter which was 34 in the previous quarter. While we acknowledge the risk and potential of LASR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LASR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.