Photonics is the next bottleneck after memory.
If you're not convinced yet?$Lumentum(LITE.US) CEO went out and said: "We're sold out really until the end of 2027. We see no end in sight."This is eerily similar to $Intel(INTC.US) CEO saying "No Relief" on Memory Shortage Until 2028.But instead... Photonics has only started to ramp up as the new architectural paradigm of AI. The current EML laser + optical transceiver bottleneck cannot be understated. Hyperscalers are buying any EML capacity or optical transceiver, $Applied Optoelectronics(AAOI.US), $Lumentum(LITE.US), $Coherent Corp.(COHR.US), and downstream providers can make.The CEO also reiterated: "We are completely sold out." The company [ $Lumentum(LITE.US) ] is "way, way under-shipping" what customers want. "Lumentum says it is under shipping demand by roughly 25% to 30%, and that all capacity is fully allocated under long-term agreements through calendar 2027"If the photonics sector is completely sold out for the next two years with no end in sight. Before there's been any price hiking. And before growth engines like CPO have even started to ramp up. There's probably something the markets haven't priced in yet.Source: Serenity
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