Optics

Bernstein

2026-10-13 06:01:04

Bernstein keeps Outperform on Lumentum and Coherent as CPO timeline debate intensifies

Bernstein said in an Oct. 12, 2026 report that investors remain split on when co-packaged optics, or CPO, can reach volume production, with skepticism building around a 2028 ramp. The firm argued that the delay risk may now be overpriced and pointed to near-packaged optics, or NPO, as a potential fallback that could be ready in 2027. It kept Outperform ratings on both Lumentum and Coherent. The report described a market split between long-only investors, many of whom are still on the sidelines, and hedge funds, which are actively debating whether CPO or NPO will drive the next phase of scale-up optics. Bernstein also flagged rising competitive pressure in Asia, especially from China, while saying Lumentum and Coherent still retain an edge through their positions in high-power lasers. Bernstein set price targets of $1,220 for Lumentum and $350 for Coherent. It forecast 2027 EPS of $22.40 for Lumentum and $9.51 for Coherent, corresponding to forward P/E multiples of 49.3x and 32.9x, respectively. The firm added that optical circuit switching is drawing attention as well, estimating the addressable market at roughly $6 billion, though it said the growth path remains uncertain.

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Nvidia

2026-09-29 08:37:13

Nvidia Spectrum-X CPO switch ramp moves ahead of expectations, with Boruowei, BizLink and Lumentum seen as beneficiaries

GF Securities Managing Director Jeff Pu said in a new CPO industry report that Nvidia’s Spectrum-X CPO switch is moving into scale-out mass production faster than the market had expected, after yield improvements at key component suppliers removed a major bottleneck. The report laid out a shipment forecast that starts at roughly 15,000 units in the fourth quarter of 2026, rises to 16,000 in the first quarter of 2027 and 30,000 in the second quarter, and reaches 100,000 units for full-year 2027. It argues that this trajectory points to faster-than-expected CPO adoption in AI training cluster scale-out networking. The report named Taiwanese suppliers Boruowei and BizLink-KY, along with U.S.-listed Lumentum, as direct beneficiaries because CPO systems require higher component content than NPO designs. It also noted that Semtech’s TIA and driver chips remain core ICs for NPO systems and that supply is still tight. On the other side, the report turned negative on Largan Precision, saying the market has priced in CPO-related upside too early and too aggressively relative to the company’s projected earnings contribution from the segment.

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Morphotonics

2026-09-22 06:06:23

Dutch optics company Morphotonics raises €40 million to expand into data centers

Dutch deep-tech company Morphotonics has raised €40 million in a funding round backed by 3M Ventures, Innovation Industries, BOM, and Invest-NL. The company focuses on optics and photonics technologies and has mainly supplied optical components for displays. According to the report, the new capital will be used to extend its display technology into data center applications. The update was cited by Techub News, which referenced TechCrunch.

480

Largan Precis

2026-08-26 02:13:33

Largan Precision hits limit-up after NT$3.08 billion Taichung land purchase tied to CPO buildout

Largan Precision rose to its daily limit shortly after the market opened, with the stock reaching NT$6,290 and setting a record high, after the optics manufacturer disclosed a major property purchase. The company said on Aug. 25 that it would spend NT$3.08 billion to acquire land and factory buildings in Taichung’s Nantun District from Kehong Industrial. The deal covers roughly 6,292 ping of land and 7,054 ping of building area, making it Largan’s largest single real estate transaction by value and size this year. Market commentary cited in the source said the purchase is mainly intended to meet customer demand and speed up capacity construction for co-packaged optics, or CPO. Largan has been expanding into silicon photonics-related manufacturing, with current work centered on Fiber Array (FA), Micro Lens Array (MLA), and the integrated Fiber Array Unit (FAU). Industry information cited in the report said the company has entered Taiwan Semiconductor Manufacturing Co.’s Compact Universal Photonic Engine, or COUPE, ecosystem as an FAU component supplier. Chairman Lin En-ping had previously said trial production lines for the new products are expected to be completed by the end of the third quarter of 2026. After process optimization and customer qualification, mass production could begin as early as mid-2027, at which point the business may start contributing revenue. The report also said this was Largan’s fourth factory-site purchase in Taichung this year.

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Optics

2026-08-20 07:08:07

Rosenblatt says CPO demand visibility extends to 2028, reiterates Buy on Lumentum, Coherent and AAOI

Rosenblatt said in an August 19 optical industry report that supply, not demand, remains the main constraint across the sector, with order visibility now stretching to 2028. The note was based on first-hand interviews conducted at the firm’s Age of AI Technology Summit and focused on Lumentum, Coherent and Applied Optoelectronics, while reiterating Buy ratings on all three names. The firm argued that as AI server architecture shifts from scale-out to scale-up, optical components are entering the next major growth cycle, with scale-up optics emerging as the key variable to watch. Rosenblatt also said no vendor had indicated delays to CPO or NPO deployment schedules, while spot prices for 100G and 200G EML and CW lasers had moved from high-single-digit increases to low-double-digit percentage gains. On competition, the report said Chinese laser suppliers can expand capacity quickly but still trail market leaders by roughly two generations in high-end CPO and NPO lasers. It added that U.S. suppliers retain their strongest advantage in ultra-high-power and long-reach CPO laser segments, even as lasers used in China-made 1.6T silicon photonics transceivers could become competitive within the next 18 months.

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Roundhill

2026-08-06 16:08:52

Roundhill’s LYTE photonics and optics ETF starts trading, last seen at $25.73

Roundhill said its Photonics and Optics ETF, LYTE, has started trading. The fund is aimed at companies in the global photonics and optics sector, with holdings that include Lumentum Holdings, Coherent, and Chinese names including Eoptolink, Innolight, and Tianfu Communication. BIT market data showed LYTE up more than 3% at $25.73. Roundhill also said the AI optical module market is expected to grow 57% this year, from $16.5 billion to $26 billion.

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