The analyst is bullish on multiple optical networking stocks as AI infrastructure shifts from GPUs to optical data movement, recommending accumulation during pullbacks for long-term gains.
AI infrastructure growth shifts bottleneck from GPUs to data movement, increasing demand for optical networking; companies in the optical stack will benefit from this durable secular trend.
The FTC approval of $SPCX’s acquisition of Mesh Optical is more than just another M&A headline—it’s a strong signal that AI infrastructure is entering its next phase. As AI clusters grow, the bottleneck is no longer GPUs but moving massive amounts of data, and that means replacing copper with optical networking. Companies across the optical stack— $LITE, $COHR, $AVGO, $MRVL, $AAOI, and emerging CPO players like $POET, $LWLG, and $SIVEF—are positioned to benefit from one of the most durable secular trends in tech. Every new AI server, every GPU deployment, and every hyperscaler buildout increases demand for high-speed optics. The AI factory runs on light, not copper, and investors who understand this shift may find some of the best long-term opportunities by accumulating quality names during pullbacks.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | +0.0% | +0.0% |
| 1 week | -2.3% | -3.7% |
| 1 month | -30.9% | -30.6% |
| 3 months | — | — |
| 6 months | — | — |