AI Stock Pops as Demand Sells Out Products Through 2027

Photonics stock Lumentum Holdings Inc (NASDAQ:LITE) is up 2.8% to trade at $919.16 at last check, after the CEO of the Nvidia (NVDA)-backed company told Bloomberg that its products are sold out through 2027 thanks to strong demand amid  AI-infrastructure growth.

LITE has already added 139.8% in 2026, and sports an impressive 1,522.6% year-over-year lead. Shares yesterday surged to a record high of $960 before settling lower, a multi-week climb that came after the stock bounced off familiar support at the 40-day moving average in late March.

The security could benefit from a short squeeze. Short interest rose 6.5% in the last two reporting periods, and the 11.49 million shares sold short now make up 16.2% of LITE's available float.

An unwinding of pessimism among short-term options traders could also provide tailwinds. This is per the stock's  Schaeffer's put/call open interest ratio (SOIR) of 1.02, which sits in the 88th percentile of its 12-month range.