From The Motley Fool · John Ballard · · 1m 30s
Lumentum vs Sandisk: Tech Stock Comparison
Which tech stock offers better growth: Lumentum's optical tech or Sandisk's flash memory?
In brief
Which tech stock offers better growth: Lumentum's optical tech or Sandisk's flash memory? Lumentum's long-term AI growth potential makes it a better buy than Sandisk despite Sandisk's current profitability. Originally reported by The Motley Fool.
Lumentum's Tech Focus
Lumentum designs optical components for high-speed data centers and cloud infrastructure.
Sandisk's Storage Specialization
Sandisk produces flash-memory solutions for consumer gadgets and massive cloud systems.
Lumentum's Market Performance
Lumentum's stock rose 5.88% to $866.18 with a market cap of $78 billion.
Sandisk's Market Performance
Sandisk's stock rose 3.92% to $1,304.84 with a market cap of $189 billion.
Lumentum's Customer Risk
Lumentum relies on Customer A for 26.6% and Customer B for 15% of net revenue.
Lumentum's Recent Growth
Lumentum reported $3 billion revenue, an 83% year-over-year increase, but a $6.9 billion net loss.
Sandisk's Diversified Base
Sandisk has no single client accounting for more than 10% of net revenue in fiscal 2026.
Sandisk's Profitability
Sandisk reported $11.4 billion net income with $20 billion revenue in fiscal 2026.
Lumentum's Financial Health
Lumentum has a debt-to-equity ratio of 0.4x and $300 million free cash flow.
Sandisk's Financial Strength
Sandisk has negligible debt, a current ratio of 2.3x, and $11.5 billion free cash flow.
Lumentum's AI Advantage
Lumentum benefits from AI's growing need for optical interconnects as models become more complex.
What to remember
Lumentum's long-term AI growth potential makes it a better buy than Sandisk despite Sandisk's current profitability.
