3 AI Infrastructure Stocks Sold Out Through 2028: Lumentum, Coherent and Broadcom

Ten of the sixteen stocks shared on camera over the last three months delivered double-digit returns, and the portfolio finished clearly ahead of the index. Only three names sit slightly below the line. The strongest result came from the SpaceX position discussed with the community near 110 dollars when sentiment was deeply negative, and the gain now stands near 48 percent. Microsoft, stuck for months in the 360-400 range, recovered as Azure growth and the AI ecosystem converted infrastructure spending into recurring revenue. Much-debated Nebius also benefited as computing demand kept running ahead of available supply.

The macro backdrop looks surprisingly supportive. FactSet data puts third-quarter S&P 500 earnings growth near 29.5 percent year over year; if confirmed, that is a third straight quarter above 25 percent. Of 116 companies that issued guidance, 72 guided higher, a 62 percent share far above history. While the market set records, the forward multiple compressed from 26 to 19 because profits grew faster than prices. Since 1946 the index has closed higher in every post-midterm year with an average gain of 14.4 percent; still, past statistics guarantee nothing about the future, and growth running into 2027 plus margin expansion needs confirmation.

The optical bottleneck: Lumentum

The first name is Lumentum. As AI data centers scale, traffic between thousands of processors overwhelms copper links, and the load shifts to optical components, lasers and high-speed interconnects. For some products about 70 percent of demand cannot be met through next year, and a share of orders may stretch into 2028. The TimothySykes rundown records fourth-quarter revenue of 1.01 billion dollars with adjusted earnings of 3.23 dollars per share, and first-quarter guidance of 1.225 to 1.275 billion dollars ahead of consensus. The Investors profile stresses execution as well, and the shift toward co-packaged optics reads as the next growth wave.

On valuation, management floats the possibility of 40 dollars of adjusted earnings per share by 2028 against a Street view near 35 dollars. At the current price that implies roughly 28 times the target, to be read alongside operating margins that could approach 45 percent and real pricing power. Yet the near-term multiple sits near 50 times, so plenty is already priced in. If capacity expansion slips or hyperscaler spending slows, a sharp correction can follow. That is why I keep a partial-position discipline with adds on weakness; inside the portfolio this is speculative growth weight and any investment choice should respect personal risk limits.

Integrated photonics and custom accelerators

The second name is Coherent. It rides the same optical bottleneck as Lumentum but aims beyond single parts: through the PhotonLink platform it wants to sell integrated subsystems, lifting revenue per system and making customer ties harder to replace. FuturumGroup analysis puts 1.6T transceivers and co-packaged optics at the center of the story. At Coherent, management says 2027 capacity is fully booked, orders for 2028 are already arriving, and agreements running to the end of the decade include minimum purchase and fixed-price terms in places. Fiscal 2026 revenue rose 23 percent to 7.12 billion dollars while adjusted earnings grew 59 percent. Near 310 dollars the stock trades around 33 times the 2027 estimate of 9.42 dollars and 22 times the 2028 estimate of 14.05 dollars; a 2029 scenario of 18.55 dollars with 32 percent growth opens a theoretical 519-dollar path. The weak spot is cash: only 80 million dollars of operating cash against 1.1 billion of capital spending, with inventory swollen to 2.58 billion. The year 2027 has to prove bookings turn into revenue and free cash.

The third name is Broadcom. More than a conventional chipmaker, it builds an AI infrastructure ecosystem spanning custom accelerators, Ethernet switching, optics and connectivity. Quarterly revenue reached 29.6 billion dollars, up 86 percent, with AI semiconductor revenue at 16.7 billion. Management sees AI revenue extending from 58 billion in 2026 toward 115 billion in 2027 and 230 billion in 2028. Joint custom systems are being developed with Google, Meta, Anthropic and OpenAI, so exposure spans several fronts rather than one customer. A 247WallSt piece notes holders debating a price near 340 dollars while AI semiconductor revenue jumped 221 percent year over year with 350 billion dollars of commitments discussed through 2028. Near 362 dollars the multiple looks like 31 times forward earnings, yet the path falls toward 19 times 2027 and 12 times 2028 on current estimates. Quarterly free cash of 13.7 billion is strong; the risk is that infrastructure guarantees and purchase pledges boomerang onto the balance sheet if a customer struggles. Debt of 59.6 billion and gross margins thinning toward 73 percent demand discipline.

What links the three stories is the same: demand is not the problem, turning capacity into revenue is. At Lumentum I track the 2028 target, at Coherent whether stock and capital spending convert into cash, at Broadcom the spending rhythm of large customers. Earnings per share, margins and revenue must be read together; chasing one metric makes the portfolio fragile. Even with rally hopes in equities, building positions gradually, adding on weakness and tying investment choices to balance-sheet outcomes looks like the soundest route. This trio plays the infrastructure layer of the AI rally with rich multiples but real cash generation; surprise capacity news cuts upward, spending cuts cut downward.