Matt Frankel

So it was a spinoff.

So let me tell you a quick story.

So about a year ago, Lumentum set a long-term target that they plan to get to, quote, eventually of $3 billion in annualized run rate revenue and a 20% operating margin.

It wasn't even close to that a year ago.

Now, fast forward a year to now, Lumentum has $3.2 billion of annual recurring revenue and a 32% operating margin.

It has already surpassed its long-term targets in a year.

Now management sees a path to $8 billion in annual run rate revenue, and that's not even including that new manufacturing facility that with NVIDIA, it's going to be its key customer, that's going to be capable of an additional $5 billion of revenue when it comes online in 2028.

So let me be totally clear.

At more than 30 times sales and 62 times even generous forward earnings estimates,

Lumentum is not a cheap stock, but it could be the most attractive, quote, expensive stock that's on my radar right now.

So this was a harder question than you might have thought to answer.

Just to John's point, if an AI bubble does pop, there are a lot of AI adjacent stocks that you might not think of.

Like the financial sector is one of my big focus areas.

There's so much AI that kind of permeates even through the traditional banks like Bank of America and JPMorgan Chase.

that you know they're investing so much in ai right now the insurance industry progressive's one of my favorite stocks right now but they're considered like the ai leader of insurance so like you know there's so many like little you know ai has its claws in a lot of things so i'm going to try to name just a few that are on my watch list that have little exposure to ai i don't want to say none um trex is one of them t-r-e-x i'm a big proponent of housing right now and

and especially people investing in their homes.

I think we're gonna see a refinancing wave whenever interest rates decide to turn.

Trex will be a big beneficiary of that.

Companies like Home Depot have specifically called out higher interest rates and the reason why people are delaying big projects.

I look at some of these companies, even Home Depot, as kind of like a loaded spring right now that, you know, when people decide to really pull the trigger on projects.