24/7 Wall Street
02 Jun 2026, 16:43 UTC · 2h ago
Coherent Advances 16%, Lumentum Climbs 13%, Applied Optoelectronics Adds 8% as Optics Rally Broadens
24/7 Wall Street
02 Jun 2026, 16:43 UTC · 2h ago
Story key points
6 claims · impact-rated
Lumentum is guiding for fiscal Q3 2026 revenue growth of over 85% year-over-year, targeting $780 million to $830 million. — Extremely high growth guidance for a large-cap institutional name suggests a massive acceleration in AI infrastructure spending.
+0.80Applied Optoelectronics' Q1 2026 datacenter segment revenue more than doubled due to strong demand for 800G transceivers. — Direct evidence of a rapid ramp-up in the next generation of high-speed optical networking required for AI clusters.
+0.70Coherent reported fiscal Q3 2026 revenue growth of 21% YoY, with its datacenter and communications segment growing 41%. — Strong fundamental growth and the structural tailwind of a $2 billion NVIDIA investment support a higher valuation floor.
+0.60Continue reading
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The optics complex (COHR, LITE, AAOI) is seeing an industry-wide repricing as hyperscaler capex flows into optical networking infrastructure. — Signals a broadening of the AI trade from GPUs to the essential networking components that connect them.
+0.50Applied Optoelectronics continues to report operating losses despite its rapid revenue ramp and high beta of 3.76. — Highlights significant execution risk and volatility compared to its larger, more stable peers in the sector.
-0.30The sector's stocks have become extended winners, with one-year gains ranging from 449% to 1,255%. — Extreme valuations and steep price climbs increase the risk of a sharp correction if growth expectations aren't met.
-0.20Ticker attribution
Model heads
Stock climbed over $1,000 driven by massive YoY revenue growth and a significant order backlog.
Stock surged 16% following strong revenue growth in its datacenter and communications segment.
Strong revenue growth in datacenter segment, though tempered by operating losses and high volatility.
Mentioned as a structural tailwind through its $2 billion investment in Coherent.
[mutual] Both companies compete in the 800G transceiver and datacenter optics market.
[mutual] Both companies are part of the 'optics complex' and are compared as peers in the datacenter optical networking market.
[mutual] Both companies provide optical networking infrastructure and transceivers for AI datacenters.
[mutual] NVIDIA has a $2 billion investment in Coherent, deepening their laser and optical networking partnership.
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