Quantum Computing (QUBT), or QCi, a provider of affordable computing machines and integrated photonic technology, is making a bold bet at a dynamic time for the quantum tech industry. The company has agreed to acquire recently bankrupt Luminar’s semiconductor business unit in an all-cash transaction, betting that Luminar’s photonics expertise originally built for LiDAR can help speed QCi’s push towards commercial quantum systems. The acquisition of Luminar Semiconductor, Luminar’s photonics and chip div ...

Industry Overview - Artificial intelligence is entering a new phase of infrastructure expansion, with photonics as a key technology enabling this growth [1] - Optical interconnects, silicon photonics, and co-packaged optics are essential for boosting bandwidth, reducing latency, and lowering power consumption in next-generation data centers [2] - The market for optical interconnects is projected to grow from approximately $16 billion in 2024 to between $34 billion and $41 billion by 2030 [3] Company Insights - Lumentum manufactures critical optical components for AI data centers and has seen accelerating sales and earnings growth, earning a Zacks Rank 1 (Strong Buy) [7][8] - Coherent Corp produces lasers and optical components for AI data centers and has a Zacks Rank 1, with strong sales and earnings momentum [10][11] - Fabrinet specializes in the assembly of optical and photonic components and has a Zacks Rank 2 (Buy), benefiting from rising demand for high-speed optical modules [14][16] Financial Performance - Lumentum's revenue is projected to climb 56% this year and 31.4% next year, with earnings expected to surge 163% year over year [9] - Coherent Corp's sales are expected to grow 15.1% this year and 14.5% next year, with earnings projected to rise 44.5% and 24.6% over the same periods [11] - Fabrinet's sales are expected to increase 28.5% this year and 16.9% next year, with earnings projected to grow 30.7% and 16.1% over the same periods [17] Market Trends - Investors are beginning to rotate into the photonics industry, with strong performance observed in stocks related to this sector [5] - The shift towards optical technologies in AI infrastructure is gaining attention, indicating a potential multi-year demand tailwind for companies like Lumentum, Coherent, and Fabrinet [20][21]

Core Insights - ASP Isotopes Inc. has established a new Photonics Chair at the University of Witwatersrand, Johannesburg, through a three-year donation agreement, with Dr. Angela Dudley as the inaugural chair [1][2][3] Company Overview - ASP Isotopes Inc. is focused on developing technologies and processes for isotope production across multiple industries, employing proprietary Aerodynamic Separation Process technology [5][6] - The company aims to produce and commercialize highly enriched isotopes for healthcare and technology, and plans to enrich isotopes for the nuclear energy sector using Quantum Enrichment technology [5][6] Industry Impact - The new Photonics Chair is expected to enhance South Africa's photonics research capabilities, supporting the Structured Light Laboratory's work in advancing photonics applications [2][4] - Photonics is transforming various sectors, including healthcare, telecommunications, manufacturing, security, renewable energy, and quantum computing, by improving medical diagnostics and communication networks [4][5] Research and Development - Dr. Angela Dudley will lead research that translates fundamental photonics research into real-world applications, bringing a distinguished record of research excellence and global collaboration [3][4] - The initiative aligns with South Africa's national quantum strategy, aiming to convert scientific advancements into new economic opportunities [5] Educational Contributions - The establishment of the Photonics Chair is expected to produce a pipeline of skilled talent for ASP Isotopes, supporting the company's growth and innovation in the field [6]

Core Insights - The article highlights the emerging trend of photonics as a critical component in the infrastructure supporting AI, robotics, and industrial automation, which is gaining attention from investors [1][5] - Photonics technology offers significant efficiency gains by using light to transmit data, reducing energy consumption and heat generation compared to traditional copper wiring [3][4] Industry Overview - Traditional data centers face limitations due to energy waste and heat generation from copper wiring, which is a significant challenge for power-intensive applications like AI [2] - The shift to photonics, utilizing optical interconnects and fiber optics, allows data to be transmitted at the speed of light with minimal energy loss, enhancing performance per watt [3] Investment Opportunities - The article presents a "picks and shovels" investment strategy, focusing on hardware companies essential for AI and automation, such as Lumentum, Jenoptik, and Coherent, which have reported strong earnings [4] - ETFs like ROBO and THNQ provide diversified exposure to companies involved in the photonics infrastructure, which is crucial for the future of AI and robotics [5][7]

Financial Data and Key Metrics Changes - For Q1 Fiscal Year 2026, revenue was reported at $1.4 million, a significant increase from $481,000 in the same quarter last year and slightly up from $1.3 million in the previous quarter [10] - GAAP net loss for the quarter was $1.5 million, or $0.09 per share, compared to a net loss of $730,000, or $0.06 per share in Q1 of last year [10] - Non-GAAP net loss was $437,000, or $0.03 per share, an improvement from a loss of $550,000, or $0.04 per share in the first quarter last year [11] - The company ended the quarter with $38.1 million in cash and cash equivalents, with no long-term debt [11] Business Line Data and Key Metrics Changes - The company has fast-tracked the transition to commercial-scale production of high-performance semiconductors, particularly for AI infrastructure [3][4] - Aeluma signed a new contract with NASA to leverage its scalable semiconductor platform for quantum applications, reflecting its dual-use technology approach [6] Market Data and Key Metrics Changes - The market for optical component technologies and AI infrastructure is projected to be several billion dollars within a few years, indicating strong growth potential [4] - Demand for semiconductors in the U.S. is at an all-time high, with supply chain issues affecting traditional manufacturing methods [4] Company Strategy and Development Direction - Aeluma aims to transition from R&D revenue to initial commercial product revenue, with a revenue expectation of $4 million to $6 million for fiscal 2026 [12][13] - The company is focusing on increasing manufacturing readiness and has increased wafer fabrication levels at foundry partners nearly fivefold [8] - Aeluma is strategically selective in bidding on projects that align with its commercial target markets, particularly in defense, aerospace, and AI infrastructure [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growing demand for high-performance semiconductor technology and the company's ability to deliver at scale [15] - The company is preparing for a transition to commercialization, with a focus on solidifying relationships with prospective customers and delivering samples for evaluation [27][28] Other Important Information - Aeluma completed an oversubscribed capital raise, boosting its cash position to $38 million and strengthening its no-debt balance sheet [5] - The company is actively recruiting key personnel to support its growth initiatives and manufacturing readiness [8] Q&A Session Summary Question: Update on customer engagements - Management reported continued progress in defense, aerospace, and AI infrastructure engagements, with notable achievements including sample deliveries and custom work [20][21] Question: Timeline for standing up fabs - The timeline for volume production depends on specific market verticals, but the company is currently running more wafers through fab partners and can support reasonable volumes for defense and aerospace [22][23] Question: Market sizing for transceiver components - Management highlighted strong interest in high-performance technology for higher-speed transceivers, with potential for good margins in this market [24][25] Question: Timeline for design wins or qualifications - The goal is to achieve initial commercial product revenue during the fiscal year, with ongoing efforts to solidify customer relationships and deliver samples [26][28] Question: Cash flow position - Management believes the current cash position is sufficient to reach initial revenue, but future investments may be needed to support rapid growth [29] Question: Impact of government shutdown - The government shutdown has caused some delays in contract execution, but it has not significantly impacted the company's reliance on government funding [42][43] Question: Updates on fab relationships - No new fab partners were formally added, but the company has increased wafer runs at existing fabs and is working on supply chain integration [45][46]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was a record $1.58 billion, up 3% sequentially and 17% year-over-year, driven by growth in AI data center and communications demand [24][25] - Non-GAAP gross margin improved to 38.7%, a 70 basis point increase from the prior quarter and a 200 basis point increase year-over-year [25] - Non-GAAP EPS was $1.16, compared to $1.00 in the prior quarter and $0.67 in the year-ago quarter, reflecting a 16% sequential growth and 73% year-over-year growth [27] Business Line Data and Key Metrics Changes - Data center and communications segment revenue grew by 7% sequentially and 26% year-over-year, with data center revenue increasing by 4% sequentially and 23% year-over-year [6][17] - Communications market revenue grew 11% sequentially and 55% year-over-year, driven by strong demand for data center interconnect products [17] - Industrial segment revenue grew 2% quarter-over-quarter and 4% year-over-year on a pro forma basis, with expectations for stability in the current quarter [19] Market Data and Key Metrics Changes - The company is experiencing unprecedented demand for optical networking products, particularly in AI data centers, with record bookings indicating strong future growth [5][8] - Strong demand for both 800 gig and 1.6T transceivers is noted, with expectations for significant growth in calendar 2026 [9][14] - The optical circuit switch (OCS) platform is expected to add over $2 billion of addressable market opportunity, with growing customer engagement [15][16] Company Strategy and Development Direction - The company is focused on streamlining its portfolio and concentrating investments in areas with the greatest long-term growth potential, having divested its aerospace and defense business [20][21] - Continued expansion of production capacity for transceiver modules and key optical components is a priority to meet strong demand [10][12] - The company aims for a gross margin target of greater than 42%, with ongoing cost reduction and pricing optimization initiatives [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong sequential revenue growth throughout the fiscal year, driven by robust demand in the data center and communications segments [5][24] - The company anticipates continued strong demand for its products, with significant improvements in supply chain capacity expected [10][36] - Management remains cautious about near-term demand in the industrial segment due to macroeconomic factors but expects stability [19] Other Important Information - The company has sold or exited 23 sites over the past five quarters as part of its portfolio optimization initiative [23] - The proceeds from divestitures are being used to pay down debt, significantly reducing the debt leverage ratio to 1.7 times [27][28] - The company is ramping production of 6-inch indium phosphide, which is expected to enhance gross margins due to lower production costs [11][52] Q&A Session Summary Question: Can you elaborate on the demand side and its breadth? - Management indicated very strong demand across both data center and communications, with record bookings extending well into the future, providing good visibility for planning [31][32] Question: What milestones should investors watch regarding indium phosphide capacity? - Key milestones include the ramping of production at two sites, with initial yields from the 6-inch indium phosphide production exceeding expectations [34][35] Question: How does the company view its position in the OCS market? - The company feels confident about its technology differentiation and expects meaningful revenue contributions from OCS in the coming years, with a steady ramp anticipated [38][39] Question: What is the outlook for the 1.6T transceivers? - The company expects a balanced ramp across multiple customers for 1.6T transceivers, with strong engagement and accelerated timelines from several customers [57][58]

Here to discuss the Dennis said further. Nancy Nancy Angler Lafferty, Angler investment CEO, who says, quote, It's about the power, stupid. Okay.Hit me with that thesis. Oh, and you always find the right nugget to pull out. Yeah, well, I mean, look, there's there's expected to be I mean, open air has said they need 20 gigawatts of of power at 16 billion per two gigawatts.That's that's a fair amount of change. And then you have all of these just using Texas as an example. You have all of these companies open ...

Core Insights - QCi's proprietary photonics technology allows quantum computers to operate at room temperature, making them more accessible and cost-effective compared to traditional quantum processors that require near absolute zero temperatures [1] - The quantum computing sector is experiencing significant investor interest, with QCi's stock price increasing by 3,150% over the past year, although it had previously fluctuated in negative territory [4][5] - QCi generated $373,000 in revenue for the full year 2024, a 4% increase from the previous year, but reported a net loss of $68.5 million, a 154% increase in losses [7] Company Overview - QCi is positioned as the "only pure-play nonlinear quantum optics and integrated photonics public company," focusing on advanced computing hardware that utilizes quantum mechanics and light properties [3] - The company has secured contracts with government and commercial clients, including a $406,000 subcontract from NASA and a $332,000 order from a major U.S. bank for quantum cybersecurity [9] Market Potential - The global photonic integrated circuit market is projected to grow from $17.4 billion in 2025 to $66 billion by 2032, with the broader photonics market expected to reach $1.6 trillion by 2032 [10] - QCi anticipates that its new photonic chip foundry in Tempe, Arizona, will start generating meaningful revenue within the next 12 to 18 months [10] Financial Metrics - QCi's price-to-sales (P/S) ratio is extremely high at 9,074, indicating that the company may be overvalued compared to its peers [11] - Revenue for the first six months of 2025 was $100,000, down from $210,000 in the same period the previous year, but management expects business to accelerate in 2026 and beyond [8]

Core Insights - Applied Materials partners with GlobalFoundries to establish a waveguide fabrication facility in Singapore, aiming to enhance the photonics sector for AI applications [1][2][4] - The collaboration is expected to strengthen the photonics ecosystem in Singapore, which includes various components such as materials and sensors [3][4] Company Developments - Applied Materials will focus on designing and developing advanced waveguide components, while GlobalFoundries will handle high-volume manufacturing [2] - The partnership combines Applied Materials' expertise in materials science with GlobalFoundries' manufacturing capabilities to promote next-generation devices [4] Market Performance - Applied Materials' stock has increased by 24% year-to-date, driven by demand for wafer fabrication equipment linked to AI and high-performance computing [5] - In contrast, GlobalFoundries' stock has decreased by 23% year-to-date due to a poor third-quarter outlook and declining revenue forecasts in the consumer electronics sector [5]

Core Insights - Applied Materials, Inc. has announced a strategic collaboration with GlobalFoundries to establish a waveguide fabrication facility in Singapore, aimed at accelerating the development of photonics technology driven by AI [1][2]. Company Overview - Applied Materials is a leader in materials engineering solutions essential for semiconductor and advanced display technologies, playing a crucial role in advancing AI and the commercialization of next-generation chips [4]. Industry Context - The collaboration signifies a pivotal moment in the evolution of photonics as a foundational technology for next-generation AI applications, including augmented reality and human-centric digital experiences that demand high-performance optical systems [2][3]. - The partnership aims to leverage the existing photonics ecosystem in Singapore, which includes materials, sensors, integration, assembly, testing, and applications, to foster innovation in photonics technology [3].