Investment management company Ave Maria recently released its “Ave Maria Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund returned 0.84% compared to the S&P 500 Index’s 8.12% return and the S&P 500® Equal Weight Index’s 4.84% gain. You can check the fund’s top 5 holdings for its best picks for 2025. In its third-quarter 2025 investor letter, Ave Maria Growth Fund highlighted stocks such as Tower Semiconductor Ltd. (NASDAQ:TSEM). ...

Core Insights - Tower Semiconductor and LightIC Technologies have announced a strategic collaboration to leverage Tower's silicon photonics platform for LightIC's FMCW LiDAR products, including automotive and robotics applications [1][4][5] Industry Overview - The global automotive LiDAR market is projected to grow from $859 million in 2024 to $3.6 billion by 2030, with a compound annual growth rate (CAGR) of 24% [2] - The broader LiDAR market is expected to reach $6.3 billion by 2027, driven by applications in industrial automation, smart infrastructure, and robotics [2] Company Developments - Tower Semiconductor's advanced silicon photonics platform is being utilized for large-scale AI infrastructure, which supports the integration of optical functions for FMCW LiDAR [3] - The collaboration aims to enhance optical integration and improve size, weight, power, and cost (SWaP-C) for velocity-aware LiDAR applications [4] - LightIC Technologies focuses on delivering commercially viable 4D FMCW LiDAR solutions for automotive and Physical AI applications [5][9]

Group 1 - FormFactor, Inc. announced the acquisition of Keystone Photonics to enhance its capabilities in silicon photonics and co-packaged optics for wafer testing [1][2] - The acquisition is a strategic move to meet the increasing demand from AI data centers for faster data communication with lower power consumption [2] - Management expects silicon photonics to grow at a CAGR of 30% until 2029, positioning FormFactor favorably to support manufacturers transitioning to high-volume production [4] Group 2 - Wall Street analysts maintain a positive outlook on FormFactor, with Craig-Hallum and B. Riley Securities reiterating Buy ratings and raising price targets from $66 to $78 [5] - FormFactor provides essential test and measurement technologies throughout the semiconductor lifecycle, including solutions for quantum engineers [6]

Core Viewpoint - Applied Optoelectronics Inc. has introduced a new 400-milliwatt narrow-linewidth pump laser aimed at meeting the increasing demand for silicon photonics and co-packaged optics in AI data centers [1][2]. Product Development - The 400mW laser has been in development for several years and is designed to enhance performance where broader linewidth or higher noise figures limit existing lasers [2]. - This laser can directly source into semiconductor chip-scale systems, providing a high-performance light source for hyperscalers in applications requiring precision and power from a stable wavelength [2]. Key Benefits and Specifications - The new laser technology is expected to support sophisticated optical network architectures, raising standards for laser power, coherence, and stability [3]. - It aims to unlock scalable optical I/O, simplify system design, and facilitate the transition to co-packaged optics at 800G and beyond [3]. - The laser delivers over 400mW of optical power at 50°C, with a narrow linewidth, and is built on AOI's mature buried hetero (BH) structure laser platform, ensuring excellent reliability [8]. Market Impact - The introduction of this laser is anticipated to close 800G / 1.6T power budgets by providing sufficient optical power to overcome losses without exceeding thermal limits near AI switch ASICs [8]. - It enables shared and external laser architectures, allowing multiple silicon photonics lanes or wavelengths to be fed from a single centralized source [8]. - The technology stabilizes silicon photonics devices by minimizing wavelength drift and noise, improving system yield and uptime by reducing calibration efforts [8]. Production Timeline - Samples of the new laser are currently available to select customers, with volume production expected to commence later in 2026 [3].

Summary of YJ Semi (688498.SS) Management Meeting Company Overview - **Company Name**: YJ Semi (688498.SS) - **Industry**: Optical Transceiver and Laser Technology - **Products**: Continuous-wave lasers (CW lasers) and electro-absorption modulated lasers (EML) - **Clientele**: Supplies to optical transceiver companies including Innolight and Eoptolink - **Recent Performance**: Revenues increased by 71% year-over-year in 1H25, with significant growth from the data center business [3][4] Key Points from Management Meeting 1. Positive Outlook on CW Laser Demand - Management is optimistic about the demand for CW lasers in 2026, driven by: - Increasing volume of optical transceivers - Rising penetration of silicon photonics - Capacity for CW lasers has been ramping up throughout 1Q-3Q25, with expectations for sequential growth in the coming quarters [4][5] 2. CW Laser Diodes Development - The company is upgrading its CW laser diodes to higher power levels: - 100mw CW laser products are set to ramp up in the next year - 70mw CW lasers will remain the primary contributor in 2026 due to scale and yield rates - Development of 150mw and 300mw CW laser diodes is ongoing to support client needs [5][8] 3. EML Product Development - YJ Semi has initiated verification and testing of 100G EML with top clients - The EML chipset market is currently dominated by global-tier leaders, indicating a gradual ramp-up in volume - The company is focusing on CW laser diodes production in the near term while developing next-generation products, with potential upsides in 200G EML [8][4] Industry Insights 1. Optical Transceiver Market Growth - The global optical transceiver market is projected to reach: - **2025**: US$24 billion - **2026**: US$30 billion - **2027**: US$37 billion - The 800G+ segment is expected to see significant growth, with silicon photonics penetration rates estimated at: - **60%** for 800G - **80%** for 1.6T - **100%** for 3.2T optical transceivers [2] 2. Investment Recommendations - Analysts recommend buying stocks of Innolight and Eoptolink based on the positive outlook for the optical transceiver market and silicon photonics penetration [2] Additional Notes - The company primarily uses 3-inch InP substrates, which are reported to have stable supply [4] - Management's focus on higher power CW lasers is expected to enhance production efficiency for transceiver modules [5]

LIVERMORE, Calif., Dec. 15, 2025 (GLOBE NEWSWIRE) -- FormFactor, Inc. (NASDAQ: FORM), a leading semiconductor test and measurement supplier, announced today the acquisition of Keystone Photonics, a pioneer in optical probing technology for silicon photonics (SiPh) and co-packaged optics (CPO) wafer testing. These technologies are key for next-generation data centers powering AI and high-performance computing – accelerating data communications to handle massive information loads with dramatically lower power ...

13 December 2025 | 5:13PM HKT Equity Research Global Optical transceivers: TAM introduced; rising 800G / 1.6T driven by growing AI servers infrastructure We are introducing our global optical transceiver TAM, a demand angle based on our server forecasts and the corresponding connection needed. We cover (1) the adoption trend by speed, with 1.6T ramping up adoption in 2026-27E and 3.2T starting adoption in 2027E. (2) the penetration of silicon photonics solutions, increasing along with optical module speed m ...

Broadcom reported its Q4 earnings on December 11. During the earnings call Hock Tan, president and CEO of Broadcom, said: “Our custom-accelerated business more than doubled year-over-year, as we see our customers increase adoption of XPUs, as we call those custom accelerators, in training their LLMs and monetizing their platforms through inferencing APIs and applications.” Here are the Broadcom Q4 earnings highlights: Revenue of $18 billion, up 28% year over year GAAP net income of $8.5 billion, up ...

Company Overview - Coherent is a $29 billion global leader in laser technologies and photonics, serving industrial, communications, electronics, and instrumentation markets [1] - The company has seen explosive growth in demand for its optical solutions due to the AI/datacenter buildout [1] Financial Performance - Revenues are projected to double from $3.3 billion in June 2022 to $6.7 billion by June 2026, with a stock appreciation of 290% during the same period [1] - Profits are expected to increase by 42% this fiscal year, surpassing $5 EPS, with a current year EPS consensus raised by 9.6% following a strong performance in the September quarter [2] Strategic Partnerships - A significant driver of investor enthusiasm has been Coherent's collaboration with NVIDIA to develop silicon photonics networking switches using co-packaged optics [3] - This partnership aims to enhance connectivity in AI factories, allowing for the connection of millions of GPUs [3][4] Product Innovations - Coherent supplies the laser technology for Apple's Face ID, continuing a multiyear strategic supply agreement to produce vertical-cavity surface-emitting lasers (VCSELs) [7][8] - The company is expanding its manufacturing capabilities at its Sherman, Texas facility, which is equipped for next-generation optoelectronic applications [9] Business Divestitures - Coherent is selling its Aerospace & Defense business to private equity firm Advent for $400 million, allowing the company to focus on its core technologies [7][9]

And after initial sell off, the stock soared in after hours trading. The forecast growth was huge and the company made a terrific acquisition. Then reports emerged saying that they'd lost some business with Amazon Web Services might be losing more business for Microsoft.I find this confusing. The stock plunged 7% yesterday and second only 3% today. It's given up these gains.I hope you can cure some of this up because the company is firing on all cylinders. So let's dig deeper with Matt Murphy. He's the chai ...