Strong Earnings Momentum and Investor Optimism Lifted Lumentum Holdings (LITE) in Q4

BlackRock, an investment management company, released its fourth-quarter 2025 investor letter for the “BlackRock Technology and Private Equity Term Trust”.  A copy of the letter can be downloaded here. BlackRock Technology and Private Equity Term Trust (BTX) follows a unique method by combining technology stocks from the U.S., non-U.S., and private investments and investing in equities across small, mid, and large cap companies with above-average earnings growth potential. BTX returned 0.7% on market price and 1.5% on net asset value (NAV) in Q4 compared to -0.1% for the MSCI ACWI SMID Growth IT Index. The technology sector is positioned as a key market driver in 2025 due to strong fundamentals supported by solid growth in AI, cloud computing, networking, and manufacturing. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, BlackRock Technology and Private Equity Term Trust highlighted Lumentum Holdings Inc. (NASDAQ:LITE). Lumentum Holdings Inc. (NASDAQ:LITE) is an optical and photonic products manufacturing company and a significant contributor to the fund’s performance in the quarter. On February 12, 2026, Lumentum Holdings Inc. (NASDAQ:LITE) stock closed at $583.46 per share. Lumentum Holdings Inc. (NASDAQ:LITE) delivered a 79.94% return in the past month, and its shares are up 651.11% over the past twelve months. Lumentum Holdings Inc. (NASDAQ:LITE) has a market capitalization of $41.659 billion.

BlackRock Technology and Private Equity Term Trust stated the following regarding Lumentum Holdings Inc. (NASDAQ:LITE) in its fourth quarter 2025 investor letter:

"At an individual position level, an off-benchmark position in Lumentum Holdings Inc. (NASDAQ:LITE) (3.3%) was the largest contributor to relative returns. The semiconductor company’s shares rose supported by strong earnings momentum and investor optimism around its optical and AI-related products."Lumentum Holdings Inc. (LITE): Among Billionaire George Soros’ Small-Cap Stocks with Huge Upside Potential

Lumentum Holdings Inc. (NASDAQ:LITE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios held Lumentum Holdings Inc. (NASDAQ:LITE) at the end of the third quarter, up from 59 in the previous quarter. Lumentum Holdings Inc. (NASDAQ:LITE) achieved a remarkable 65% surge in revenue in the second quarter of fiscal 2026. While we acknowledge the potential of Lumentum Holdings Inc. (NASDAQ:LITE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Story Continues

In another article, we covered Lumentum Holdings Inc. (NASDAQ:LITE) and shared a list of best communication equipment stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.

View Comments