Matt Frankel

So the recent quarterly report was fantastic, even by Lumentum standards, which has produced a string of blowout earnings reports over the past year.

Revenue was up 90% year over year and 22% sequentially.

That's an acceleration over the previous level.

Earnings came in even better than expected.

Adjusted operating margin expanded by 21 percentage points year over year to 32%.

So beyond those headlines,

NVIDIA just made a $2 billion direct investment in Lumentum.

Lumentum announced a brand new facility that it's building that should be online in 2028 that is directly related to its partnership with NVIDIA.

They're gonna be providing the demand for it.

It's like building a factory and you already have someone who's buying all the products.

So that bolstered its already cash-rich balance sheet.

Lumentum now has over $3 billion of cash just sitting around.

It solidified that partnership between NVIDIA and Lumentum, which is honestly its most important customer.

And its guidance calls for 22% sequential growth in the current quarter.

So things aren't slowing down just yet.

So this was a very strong report, and I completely see why the market reacted the way it did.

Yeah, so this has been more than a 10-bagger in a year, like you correctly point out.

But I would counter and say that this is not the same business it was a year ago.

And by the way, if you've never heard of Lumentum back when it was primarily a telecom networking company, it was part of JDS Uniphase.

So maybe you've heard of that.