Company Reports

We initiate coverage on Coherent and Lumentum, two major suppliers of photonics components. Both firms specialize in indium phosphide lasers and transmission modules that power fiber networks and will compete in near- and co-packed optics, the next generation of artificial intelligence connectivity.

Coherent focuses on an unusually broad range of photonics technologies and end markets. While the firm has historically served the data center, communications, and industrial markets in a relatively balanced mix, the growing need for faster, energy-efficient photonics to support artificial intelligence infrastructure is shifting revenue heavily toward the data center.