Lumentum, Coherent and CoreWeave are all set to report earnings this week, placing the CPO trade in focus. Serenity, in an outlook on the upcoming CPO earnings week, said it expects LITE to deliver a very strong print. The firm pointed to AAOI's just-released Q2 2026 results, which show optical transceiver demand unbalanced by 20-40%, with lasers now the main bottleneck. At POET's June AGM, management disclosed that three major laser suppliers have fully sold out capacity for the next two years, and Nvidia has locked in supply through investments. That, in Serenity's view, confirms the industry's supply-demand tightness. Serenity nonetheless declined to make a prediction about how the stocks will react after earnings. "Most of the time it's like flipping a coin," Serenity said. "But I can say a lot of pricing happens before earnings, unless something very unexpected occurs. Either way, I expect LITE's earnings to be very strong."
Lumentum, Coherent and CoreWeave are set to report earnings this week, and Serenity is sharing its read on the CPO group ahead of the numbers. The firm singled out LITE as likely to post a very strong quarter.
Serenity pointed to AAOI's recently released Q2 2026 figures, saying optical transceiver demand is unbalanced by 20-40%. Lasers have become the main constraint, according to the firm.
Supply tightness also showed up at POET's June AGM, where the company said three major laser suppliers have sold out capacity for the next two years. Nvidia has already locked in supply through investments, which Serenity sees as confirmation that the market remains tight.
Asked whether earnings will drive the stocks, Serenity declined to make a call. "Most of the time it's like flipping a coin," the firm said. "But I can say a lot of pricing happens before earnings, unless something very unexpected occurs. Either way, I expect LITE's earnings to be very strong."
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