The analyst expresses a bullish view on SIVE/SIVEF and IQE, favoring them due to their roles in photonics supply chains and potential for rerating with management pivoting toward InP production.
Sivers is embedded in hyperscaler supply chains and expanding capacity efficiently; IQE is a key supplier in photonic supply chains with potential for rerating if Taiwan sales succeed and management pivots to InP production.
$SIVE / $SIVEF and $IQE. Sivers makes laser arrays and cw dfb lasers for cpo/silicon photonics. And is embedded into hyperscaler supply chains like $AMZN and $MSFT clusters as the light source from captive models like $MRVL celestial from $POET and merchant models from Ayar. Then they’re up capacity through win qualification, so they don’t burn as much capex scaling in house. $IQE is InP epiwafer and refactoring reactors from legacy drag to photonic supply chains. They’re already a known $LITE supplier and the other biggest one is Landmark sitting around ~$4B (with less latent capacity). This is basically the equivalent of $IREN or $RIOT turning their Bitcoin miners into HPC, but for photonics. There’s a decent amount of debt, but this is more of a guess that their Taiwan sales will go through and management will pivot toward InP production for rerating. So those two are my favorites right now
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -24.3% | -22.6% |
| 1 week | +1.0% | +3.2% |
| 1 month | +204.1% | +196.7% |
| 3 months | +766.9% | +754.6% |
| 6 months | — | — |