$Lumentum(LITE)$ Citi put out a note saying the optical market could be the next AI infrastructure supercycle. The optical interconnect space is accelerating.
Their global optical interconnects market projections point to a $92B opportunity by 2028, a 65% 3-year CAGR, and ASP growth of 18% CAGR.
On the chip side, they see optical chip demand hitting 1.714B units by 2028, roughly a 62–63% CAGR from 2025. CW Laser chips are projected at 987M units by 2028, around a 114% CAGR. EML chips at 718M units by 2028, about a 34% CAGR.
As AI clusters scale and networking demand explodes, optical infrastructure could become the next major bottleneck. The AI buildout is moving beyond GPUs. Bandwidth is the next battlefield.
Memory was one of the biggest AI themes. Optics could be one of the biggest AI infrastructure themes of 2027.
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