The debut of 3.2T & 6.4T optical engines is the equivalent of an unrestricted, multi lane fibre optic superhighway moving data at the speed of light. Without this optical upgrade, next generation AI models may choke on their own data.
2 key stocks to consider:
$COHERENT(COHR)$ manufactures the actual physical components: the high speed optical transceivers & laser diodes required to translate electrical signals into light. Coherent is a direct beneficiary of the 800G to 3.2T migration.
$Ciena(CIEN)$ is the network fabric maker as it specialises in optical routing & network systems. It provides the macro scale routing stability to hyperscalers.
$Photonics & Optics ETF(LYTE)$ is a good strategy if you prefer diversification.
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- YTGIRLΒ·09-22TOPCOHR looks cleaner to me here because it sells the actual picks and shovels. Every jump from 800G to 3.2T forces a hardware refresh, while CIEN depends more on system level adoption.1Report
- JohnMitchellΒ·09-22TOPCIEN is where I get stuck. System vendors rarely keep margins clean when capex cycles turn, and the last telecom buildout hangover was brutal lol1Report