3 Data Center Stocks Are Soaring—Analysts Think 1 Could Go Higher

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 skyrocketed after releasing their latest financial results. However, Wall Street analysts appear concerned about two of these names, while being more optimistic about another. Below, we’ll detail their results and what analysts are predicting going forward. 

LITE Soars +20% on Earnings, but Downside Could Be on the Horizon

Tech stock Lumentum NASDAQ: LITE makes a variety of products that are essential for data transmission in data centers. Optical transceivers, which send data using light, are one example. These offer key advantages over copper transceivers, such as higher bandwidth and lower latency.

Shares of LITE catapulted nearly 24% on Nov. 5 as markets reacted to the company’s latest earnings.

Revenue rose 58% to $543 million, beating estimates of $525 million. Adjusted earnings per share (EPS) of $1.10 also beat estimates by 7 cents.

Adjusted operating margin surged by 1,570 basis points as the imbalance between customer demand and supply widened. As a result, Lumentum shares have risen about 188% in 2025.

However, analysts are indicating that the stock may be overbought. The consensus price target of just under $191 implies approximately 21% downside in shares.

Analysts who issued price targets after the earnings report are more optimistic, but the numbers still don’t look good. Among these analysts, the average target is around $218, implying a potential 10% downside. 

Rosenblatt’s $280 price target stands out with a 16% upside projection, but B. Riley is far more bearish at $147, signaling nearly 40% downside.

Up 500%, Analysts Grow Cautious on SanDisk

Next up is the hottest stock in the market recently, SanDisk NASDAQ: SNDK. Over the past three months, shares have been up almost 500%. Shares popped over 15% on Nov. 7 as the market reacted to the company’s earnings. Revenue rose by 23% to $2.31 billion, beating estimates of $2.12 billion. Adjusted EPS of $1.22 also exceeded expectations by 64 cents.

Additionally, the company expects to be much more profitable next quarter than analysts anticipated.

The midpoint of its adjusted EPS guidance was $3.20 versus expectations of $1.82. SanDisk is benefiting from rabid data center demand that outstrips supply for its flash memory solutions. The company believes this dynamic will continue in calendar year 2026 and beyond.

Despite the company’s strong results, many analysts clearly believe that SanDisk shares are running hot, with the consensus price target of $183 implying 31% downside potential.

Targets updated after the company’s report are much more bullish, but many still see downside. Among them, the average target is approximately $258. That figure implies around 3% downside in shares. Still, Cantor Fitzgerald's $300 target suggests shares could rise 13%. Barclay’s $220 target is the most bearish among recently updated forecasts and indicates 17% downside potential.

Recent Targets See Upside in Coherent

Coherent NYSE: COHR competes with Lumentum in several areas, with a keen focus on optical networking products and components. Shares rose more than 18% on Nov. 6, the day after the firm reported earnings.

The stock is up around 47% in 2025. Revenue rose by over 17% to $1.58 billion, beating estimates of $1.54 billion. Adjusted EPS of $1.16 also surpassed expectations.

Notably, the limited supply of a key input for its products, indium phosphide lasers, stunted Coherent’s growth. However, the company saw record bookings last quarter, indicating that demand remains strong. Coherent believes its supply of indium phosphide lasers will improve significantly in the rest of the fiscal year.

Analysts appear substantially more bullish on Coherent than on Lumentum or SanDisk. While the consensus price target of $137 implies around 1% downside potential, targets updated after the earnings release tell a significantly different story.

Among them, the average is just under $163. This figure suggests that shares could rise around 17%. Needham’s $190 target is the most bullish recent forecast, projecting 37% upside potential. Northland Securities’ $125 target is the most bearish among updated forecasts. It implies 10% downside, still significantly less than the bearish targets for Lumentum and SanDisk.

Data Centers Can’t Get Enough of LITE, SNDK, and COHR

Given the extensive rise in Lumentum and SanDisk shares, it is not surprising that many analysts are tempering their future expectations. Ultimately, all three of these stocks are intriguing as data center operators and suppliers scramble to purchase their equipment. Investors may want to consider evaluating them further, especially in case significant dips emerge in the future.