Piper Jaffray: Buy Apple-supplier Lumentum because demand for its 3D sensors will surge

“Piper Jaffray believes Lumentum shares will rise, predicting Apple will include its 3D sensor components in more iPhone models this year,” Tae Kim reports for CNBC.

“The firm reiterated its overweight rating for the company’s shares, forecasting strong growth for its products in the second-half of 2018,” Kim reports. “‘We view LITE as one of the best stocks to own in the optical group given its high relative exposure to fast growing markets such as 3D sensing, ROADMs and industrial lasers,’ analyst Troy Jensen said in a note to clients Monday. ‘We believe 3D sensing demand inflects in the next few months and anticipate LITE will be the primary supplier for Apple.'”

“Lumentum makes optical, lasers and 3d sensing components for telecom, industrial and technology companies,” Kim reports. “Its technology powers the Face ID feature in Apple’s iPhone X.”

Read more in the full article (subscription required) here.

MacDailyNews Take: If, as many expect, Apple’s TrueDepth Camera system will spread across all iPhones and iPads eventually – many likely later this year – lot more components will be required.

Austria’s AMS AG, maker of Apple TrueDepth components, warns of short-term demand difficulties – April 24, 2018
Bernstein: AMS AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018


  1. It appears as though all the smartphone reviewers want under-display fingerprint sensors more than something like Face ID. Either they don’t like notches or say that under-display fingerprint sensors are a lot faster or more convenient for unlocking a smartphone.

    1. When you look at the number of Android phones which suddenly sport notches, I don’t think you can make much of an argument that people don’t like notches.

      I suspect that the real reason why Android phones are going for under-display fingerprint sensors has more to do with not being able to get hold of the optical sensors and technology which Apple uses for Face ID. Under-display fingerprint sensing will have to do for them until they work out a better way of achieving similar results.

  2. I had stock in LITE but got tired of waiting for this news. Still made $10/share. I’ve learned not to invest in Apple supplier stock (e.g. GATA). If it’s that successful of a business Apple will purchase them or take over their tech.

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