Jim Cramer Says Skip Poet and Buy These 2 Proven Photonics Stocks for AI Data Centers in August
Jim Cramer recommends Lumentum (LITE) and Coherent (COHR) for AI data center exposure, citing their NVIDIA investments and strong financial performance. LITE reported 66% revenue growth and 685% stock surge. COHR saw 18% revenue growth and 242% stock rise. Both companies provided optimistic guidance for future growth.
How this was made
The 30-second read
Why it matters
The earnings beats and guidance reinforce the thesis that photonics stocks are better positioned than speculative peers.
Market read
Both companies delivered strong Q2 results, raising expectations for AI data‑center demand and supporting a bullish short‑term trade idea.
What to watch
Supply‑chain constraints or slower AI spend could limit upside.
Background
Jim Cramer highlighted LITE and COHR as proven photonics plays after their strong earnings and NVIDIA funding.
Ticker impact
Lumentum reported Q2 FY2026 revenue of $665.5M (+66% YoY) and raised FY guidance, confirming a $2B NVIDIA investment.
Potential further price appreciation on momentum.
Revenue beat, margin expansion, and large NVIDIA partnership provide clear catalyst.
Coherent posted Q2 FY2026 revenue of $1.686B (+18% YoY) with EPS beat and announced sale of its Aerospace & Defense unit.
Likely continued rally on strong results and debt reduction.
Profitability improvement and cleaner balance sheet are positive fundamentals.
Market effects
Photonic components for AI data centers gain credibility, supporting related suppliers.
U.S. tech sector benefits from NVIDIA-backed growth.
Highlights continued global demand for AI infrastructure.
Counterpoint
Valuations may already price in rapid growth; any slowdown could trigger a correction.
Key entities
- personJim Cramer
Mad Money host recommending the stocks.
- companyNVIDIA
Provided $2 billion funding to both firms.
