LITE is often viewed as pure play for the next phase of optical networking. It is the clear market leader in Optical Circuit Switching.
Lumentum's revenue grew 65% YoY in early 2026 & is projected to grow nearly 77% for the full year.
Coherent is the powerhouse of the industry, offering a massive vertically integrated manufacturing footprint.
COHR is more diversified with a large industrial laser segment that provides a cushion if AI specific demand ever plateaus.
COHR also trades at lower valuation that LITE.
I would choose COHR since I am looking for more durable long term returns. While LITE has a higher percentage growth, COHR's superior manufacturing scale of 6 inch wafers & huge backlog provide a more stable foundation.
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