I’m leaning A — $LITE 🔥
The combination of CPO, OCS and rising optical bandwidth demand makes this one of the more interesting AI-infrastructure stories to watch. Lumentum has also reported strong growth, with FY2026 revenue up 83% YoY, while NVIDIA’s $2B investment and multi-year purchase commitment add another layer of visibility.
But the bigger question is Q2: Could optics become the next memory-style structural cycle? 👀
If AI clusters keep scaling, the bottleneck isn’t just compute — it’s moving data fast enough between the chips. That makes optical connectivity a theme I’m watching closely for the next 2–3 years.
Optical Networking Rebounds Broadly — Can a Sector Rally Without Any News?
Optical networking rebounded hard Wednesday. Lumentum +9.59% to $919.40 led the S&P 500, with AXT +11.44%, Semtech +11.03%, Coherent about +6% and Marvell +3.61% to $229.71. Lumentum had no catalyst - no earnings, no guidance, no order, no rating change. Offered instead: the group had sold off hard, and co-packaged optics makes AXT a beneficiary. Neither explains the name that led. Corning, down 14% Monday, sat it out. The bull case is that AI data must cross the optical layer and capacity is tight. That was just as true last week, while these names fell. How much of this is demand?
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