Lumentum (NASDAQ: LITE), which produces optical chips and industrial lasers, is one of Apple's (NASDAQ: AAPL) major suppliers. Its sales of 3D-sensing chips to Apple accounted for 26% of its revenue last year, while its other major customers include Huawei and Ciena.
Lumentum's fate is tightly tethered to Apple's, but its stock price only rose 8% over the past 12 months as Apple's stock price surged nearly 70%. Let's see why Lumentum failed to keep pace with its biggest customer, and whether or not it can become a more compelling investment this year.
In fiscal 2020, which ended last June, 90% of Lumentum's revenue came from its optical communications (OpComms) business, which sells optical chips to service providers and data center customers, as well as 3D-sensing chips for mobile devices, 3D printers, and industrial machines.
Source Fool.com