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Today's Featured Content 3 Data Center Stocks Are Soaring—Analysts Think 1 Could Go HigherWritten by Leo Miller. Published 11/19/2025. 
Key Points - LITE, SNDK, and COHR hit home runs in their latest quarters, with shares surging after earnings.
- Analysts are raising red flags around the potential for future gains in two of these stocks that are up more than 100% in 2025.
- However, for one of these names, updated price targets imply solid upside potential.
Three data center stocks surged after releasing their latest financial results. But Wall Street analysts are more cautious on two of them and considerably more optimistic on the third. Below, we summarize the results and what analysts are projecting going forward. LITE Soars After Earnings, but Downside Could Be on the Horizon Tech stock Lumentum (NASDAQ: LITE) makes products essential for data transmission in data centers, including optical transceivers that use light to move data and offer higher bandwidth and lower latency than copper alternatives. Don't Leave Without Claiming Your $1 Black Friday Deal
Discover how AI can help you trade smarter. One dollar. No commitments. Unlock the Deal Shares of LITE jumped nearly 24% on Nov. 5 after the company released its latest earnings. Revenue rose 58% to $543 million, beating estimates of $525 million. Adjusted earnings per share (EPS) of $1.10 beat consensus by $0.07. Adjusted operating margin widened by 1,570 basis points, driven by a growing gap between customer demand and supply. As a result, Lumentum shares have gained about 188% year-to-date in 2025. Still, many analysts warn the stock may be overbought. The consensus price target of just under $191 implies roughly 21% downside. Analysts who issued targets after the earnings report are more optimistic: the average post-earnings target is around $218, which still implies about 10% downside. Rosenblatt's $280 target stands out with a projected 16% upside, while B. Riley is much more bearish at $147, signaling nearly 40% downside. Up 500%, Analysts Grow Cautious on SanDisk Next is SanDisk (NASDAQ: SNDK), one of the market's hottest stocks recently. Over the past three months, shares have climbed almost 500%. They popped more than 15% on Nov. 7 following the company's earnings report. Revenue rose 23% to $2.31 billion, beating estimates of $2.12 billion. Adjusted EPS of $1.22 exceeded expectations by $0.64. Importantly, SanDisk guided to substantially higher profitability next quarter: the midpoint of adjusted EPS guidance was $3.20 versus analyst expectations of $1.82. The company is benefiting from strong data center demand for its flash memory solutions that currently outstrips supply and says this dynamic should persist into calendar 2026 and beyond. Despite the results, many analysts think SanDisk shares have run hot. The consensus price target of $183 implies about 31% downside. Price targets updated after the report are generally more bullish, though some still imply downside. The average updated target is roughly $258, implying about 3% downside. Cantor Fitzgerald's $300 target suggests about 13% upside, while Barclays' $220 target is the most bearish among recent updates, indicating roughly 17% downside potential. Recent Targets See Upside in Coherent Coherent (NYSE: COHR) competes with Lumentum in optical networking products and components. Shares climbed more than 18% on Nov. 6, the day after the firm reported earnings. The stock is up about 47% in 2025. Revenue increased over 17% to $1.58 billion, topping estimates of $1.54 billion. Adjusted EPS of $1.16 also beat expectations. Coherent's growth was constrained by limited supply of a key input—indium phosphide lasers—but the company reported record bookings last quarter, signaling strong demand. Management expects supply of those lasers to improve significantly in the remainder of the fiscal year. Analysts are generally more constructive on Coherent than on Lumentum or SanDisk. The consensus price target of $137 implies roughly 1% downside, but targets updated after the earnings release are notably higher. The average updated target is just under $163, suggesting about 17% upside. Needham's $190 target is the most bullish recent forecast, projecting roughly 37% upside, while Northland Securities' $125 target is the most bearish among the updated forecasts and implies about 10% downside—still less pessimistic than the bearish targets for Lumentum and SanDisk. Data Centers Can't Get Enough of LITE, SNDK, and COHR Given the sharp rallies in Lumentum and SanDisk, it's understandable that many analysts are tempering expectations. All three companies remain attractive suppliers to data centers, however, as operators and vendors scramble to secure equipment. Investors may want to study these names further and consider opportunities if meaningful pullbacks occur.
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