Matt Frankel

This isn't just cyclicality right now.

I don't think we've seen an AI cycle over the past couple of decades.

This is something that's new.

It's something that wasn't really a big market opportunity.

No one was talking about AI infrastructure a few years ago.

So shares trade for about 26 times forward earnings right now.

There's a solid case to be made that revenue growth will accelerate in the 2027 fiscal year, which starts very soon.

I'd actually be comfortable opening a small position in Cisco at this level, even at an all-time high, and then adding incrementally.

That's just kind of my take on it.

Yeah, so Lumentum has been around for a long time.

It produces optical components for things like 3D mapping, for high-speed communications, think fiber optics.

For the longest time, this was a company that got most of its business from the rollout of 5G technology and telecommunications and things like that.

But the key thing to know now is that the components Lumentum makes are extremely valuable parts of data center infrastructure, specifically when it comes to interconnections and other forms of AI infrastructure.

And that's what's really driving the business today.

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,