koolgal
04-13
🌟🌟🌟Both $Lumentum(LITE)$ and $COHERENT(COHR)$ are currently primary beneficiaries of the AI optics supercycle with NVIDIA investing USD 2 billion in each to secure long term capacity for AI data centers.

LITE is often viewed as pure play for the next phase of optical networking.   It is the clear market leader in Optical Circuit Switching.  

Lumentum's revenue grew 65% YoY in early 2026 & is projected to grow nearly 77% for the full year.

Coherent is the powerhouse of the industry, offering a massive vertically integrated manufacturing footprint.

COHR is more diversified with a large industrial laser segment that provides a cushion if AI specific demand ever plateaus.

COHR also trades at lower valuation that LITE.

I would choose COHR since I am looking for more durable long term returns.  While LITE has a higher percentage growth, COHR's superior manufacturing scale of 6 inch wafers & huge backlog provide a more stable foundation.

@Tiger_comments @TigerStars @Tiger_SG

Optical Networking Rebounds Broadly β€” 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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