Shares of Lumentum (LITE) fell 9.8% on Monday, after a strong run driven by AI demand for optical lasers. Last week, CEO Michael Hurlston told Bloomberg the company was “almost sold out” for 2029, pushing shares to an all-time high. Over the weekend, Broadcom CEO Hock Tan told a Singapore conference that many investors are treating AI like a “casino” with extreme expectations, and questioned whether leading AI companies such as OpenAI will have sustainable, profitable business models. He said enterprise use of AI tokens is mostly experimental and not economical in the long run, and his comments triggered a broad pullback in AI infrastructure stocks. The article argues the bull case for optical stocks remains intact as long as end users keep getting value from the technology and sustainable AI business models develop.
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