I’ve been going down the rabbit hole on photonics / optical networking stocks lately (LITE, AAOI, CRDO, COHR, etc.) and I can’t tell if this is early innings or if we’re already in the “everyone knows” phase.
The bull case seems pretty straightforward:
AI data centers are exploding so a massive need for bandwidth and optics (lasers, transceivers, interconnects) become critical infrastructure.
That part makes sense to me. What I’m struggling with is timing.
Some of these names have already gone on insane runs. At the same time, you keep hearing that we’re still in the early stages of AI buildout and that demand could last for years.
What say you guys?
Is photonics just getting started? $LITE and $COHR
byu/gunsoverbutter instocks
Posted by gunsoverbutter
5 Comments
So many of these posts popping up sounds like bubble. But the thesis is strong. Dick is confused
Space, Quantum, AI, and stocks with no revenue, they all good to a trillion just for fun
No. They’ve been exploding and now they’ve reached Reddit that means top is in
It’s absolutely real. Integration of CPOs is extremely important for power draw and efficiency and these companies are getting *absurdly* huge orders – see AEHR and Soitec for example.
Best risk-adjusted spaces are test equipment like KLA and AEHR, CPO vertical integration like Broadcom, and most importantly, HBM hybrid bonding. There are spaces with room to run for sure – check out BE Semiconductors and SUSS MicroTec, as well as the big packaging names like Onto.
Still early on photonics imo. Just wait until photonic transistors one day replace electronic transistors. Imagine a smart phone using photons instead of electrons: faster speeds & lower temperatures. We don’t have technology like this yet, so definitely long on photonics.