Not Micron, Not Sandisk. This AI Stock Will Be the Biggest Beneficiary of the Next Infrastructure Bottleneck

Lumentum Holdings (LITE) is emerging as a key play on AI infrastructure constraints as optical networking components become the next critical bottleneck in data center buildouts. The optical and photonics supplier reported revenue up 109% year-over-year with adjusted EPS climbing 3.7x in its most recent results.

The company is positioned ahead of an expanding addressable market, with the optical networking segment projected to reach $154 billion by 2028. LITE shares have already surged 140% in 2026, yet analysts see potential upside of 113% over the next three years driven by favorable supply-demand dynamics in the space.

While memory suppliers Micron (MU) and SanDisk (SNDK) have captured attention in the AI infrastructure trade, Lumentum's optical components are emerging as the next layer of constraint as data centers scale AI workloads requiring higher-bandwidth interconnects.