On a generally bullish day for the market, this growth stock headed south. Did this AI infrastructure company have something disastrous to report?While shares of Poet Technologies (POET 5.02%) stock have surged higher throughout the week, investors are slowing their buying activity today. Lest investors fear that the company, a designer of optical engines, had some troubling news to report, there was no such thing. In fact, there appears to be no apparent cause for the stock's decline. As of the market's cl ...

Key Takeaways Coherent's stock has soared 60.9% in a year, beating its industry and peers.Strong demand for AI datacenter, InP, OCS and ZR/ZR products is driving COHR's growth momentum.COHR projects solid y/y revenue and EPS growth for fiscal 2026-2027, with multiple upward estimate revisions.Coherent Corp.'s (COHR) stock price has increased 60.9% in a year, outperforming the industry's 5.7% growth and the Zacks S&P 500 Composite’s 16.6% rise.COHR has outperformed its industry peers, Byrna Technologies (BYR ...

25 November 2025 | 12:16PM HKT Equity Research Sunny Optical (2382.HK): Mgmt. Call: AI / AR glasses to ride on growing demand and specification upgrade; solid smartphone market in 2026E Allen Chang +852-2978-2930 | allen.k.chang@gs.com Goldman Sachs (Asia) L.L.C. Verena Jeng +852-2978-1681 | verena.jeng@gs.com Goldman Sachs (Asia) L.L.C. Xuan Zhang +852-2978-1478 | xuan.zhang@gs.com Goldman Sachs (Asia) L.L.C. We hosted Sunny Optical management recently in our AI / AR glasses corp call series. Management re ...

Core Insights - Lumentum has experienced a significant stock price increase, with shares climbing 254% over the past 52 weeks and a remarkable 307% surge in the last six months, indicating a potential shift in the company's long-term trajectory [1][2][4] - The company is positioned as a key player in the AI infrastructure boom, with its stock recently hitting $300 before a slight pullback, driven by strong earnings and optimistic analyst targets [2][4][5] Company Overview - Lumentum, founded in 2015 and valued at $20.1 billion, specializes in optical technology, producing laser chips, photonic components, and high-speed transceivers for AI data centers and cloud networks [3][5] - The company operates in two segments: Cloud & Networking, which supplies advanced optics to hyperscalers, and Industrial Tech, which provides precision lasers for various manufacturing sectors [3] Financial Performance - In Q1 fiscal 2026, Lumentum reported revenue of $533 million, a 58% year-over-year increase, marking the highest quarterly revenue in its history [10][11] - The adjusted EPS surged to $1.10, up from $0.18 in the same quarter last year, exceeding Wall Street expectations [10] - Over 60% of Q1 revenue is now linked to cloud and AI infrastructure, highlighting a strategic shift from its telecom roots [11] Growth Projections - Management has revised Q2 revenue projections to between $630 million and $670 million, significantly ahead of previous expectations [14][15] - Analysts anticipate a Q2 EPS growth of 735.7% year-over-year, with fiscal 2026 EPS expected to reach $3.61, an increase of 836.7% annually [17] Analyst Sentiment - Needham has upgraded Lumentum to a "Top Pick for 2025," raising its price target to $290, reflecting confidence in the company's growth driven by laser demand [4][18] - Mizuho also increased its price target to $325, citing optimism around Google's TPU ramp-up as a catalyst for Lumentum's optical compute switch business [21][22] - The consensus rating for Lumentum is a "Moderate Buy," with 12 out of 20 analysts recommending a "Strong Buy" [23]

Core Insights - The AI megatrend is benefiting not only major players like Nvidia and hyperscalers but also companies involved in the infrastructure for AI, particularly optical components suppliers [1][2][3] Industry Overview - The global optical components market is valued at approximately $287.3 billion in 2023 and is projected to reach $628.8 billion by 2032, indicating a compound annual growth rate (CAGR) of 9.2% [3] - Optical components are essential for enabling faster data movement and lower power consumption, which are critical for scaling AI technologies [3] Company Spotlight: Coherent Corp. (COHR) - Coherent Corp. is a global technology company established in 1971, focusing on photonics, optical materials, devices, lasers, and compound semiconductors [5] - The company has a market capitalization of $21.9 billion and has seen its stock price increase by 60% year-to-date [6] - Coherent has consistently met earnings estimates over the past two years, with Q1 2025 revenues of $1.58 billion, reflecting a 17% year-over-year increase, and earnings of $1.16 per share, representing a 73.1% annual growth [7]

Group 1 - The core viewpoint of the news is that Tengjing Technology experienced a decline in stock price and significant trading activity, indicating potential volatility in the market [1] - On November 21, Tengjing Technology's stock fell by 3.55%, with a trading volume of 2.971 billion yuan. The net financing buy was -63.2585 million yuan, with a total financing balance of 753 million yuan, which is 3.83% of the circulating market value [1] - The company has a high financing balance, exceeding the 80th percentile of the past year, indicating elevated investor interest or risk [1] Group 2 - As of September 30, Tengjing Technology reported a total of 16,800 shareholders, an increase of 57.31% from the previous period, while the average circulating shares per person decreased by 36.43% [2] - For the period from January to September 2025, the company achieved operating revenue of 425 million yuan, a year-on-year increase of 28.11%, and a net profit attributable to shareholders of 63.8025 million yuan, up 15.00% year-on-year [2] - Since its A-share listing, Tengjing Technology has distributed a total of 91.1065 million yuan in dividends, with 52.9483 million yuan distributed over the past three years [3]

Core Insights - Lumentum Holdings has received an "Outperform" rating from Mizuho with a price target of $290, highlighting its significant role in AI infrastructure development [1] - The company holds over 50% market share in indium phosphide lasers, essential for advanced AI servers [1] Market Trends - Analysts predict a transition from 400G and 800G bandwidth to 1.6T and 3.2T connections, driven by the limitations of copper cables, which will benefit Lumentum [2] - Lumentum's laser revenue is expected to more than double from approximately $1 billion in fiscal 2025 to $2.2 billion by fiscal 2028, constituting 54% of total revenue [2] Strategic Partnerships - Partnerships with major companies like Alphabet and Nvidia are expected to generate significant revenue, with an estimated additional $100 million per quarter from hyperscalers by fiscal 2027 and $50 million per quarter from Nvidia starting in fiscal 2026 [4][5] Financial Performance - Lumentum reported a 58% year-over-year revenue increase to $533 million in fiscal Q1, with operating margins expanding by 1,500 basis points [6] - The company anticipates fiscal Q2 sales to reach $650 million, achieving this milestone two quarters earlier than previously expected [6] Capacity Expansion - Improvements in manufacturing yields and throughput are projected to increase unit capacity by approximately 40% in the coming quarters [7] - The product mix is shifting towards higher-margin 200-gigabit EML lasers, expected to represent 10% of the mix by March 2026 [7]

Core Viewpoint - The AR/MR waveguide glass chip market is projected to reach $426 million by 2031, with a compound annual growth rate (CAGR) of 5.1% in the coming years [2][10]. Market Overview - Major manufacturers in the global AR/MR waveguide glass chip market include Hoya, Corning, and Schott, with the top three companies holding approximately 57.73% of the market share in 2024 [7]. - The market is primarily driven by advancements in optical display and spatial computing technologies, as well as the acceleration of AR ecosystem development by global tech giants [10]. Industry Chain Analysis - The production of AR/MR waveguide glass chips involves multiple processes including precision cutting, ion exchange, polishing, coating, and optical testing [8]. - The upstream segment focuses on the production of high-purity optical glass materials, with leading companies like DISCO and Hoya excelling in material purity and flatness [8]. - The midstream segment is critical for determining product yield and optical performance, requiring high cleanliness and precision in manufacturing processes [8]. Applications - The downstream applications of AR/MR waveguide glass chips include head-mounted displays, spatial computing glasses, and mixed reality visualization systems, with key manufacturers like Apple and Microsoft leading the market [9]. - North America and Asia are the primary markets, with North America focusing on high-end immersive experiences and Asia rapidly expanding in consumer-grade AR glasses and industrial applications [9]. Industry Development Trends - Future trends indicate a shift towards high integration, lightweight, and low-energy consumption in AR/MR waveguide glass chips [12]. - The industry is moving towards automation and digitalization, with AI quality control and smart manufacturing becoming essential for efficiency and reliability [12]. - Green manufacturing and recyclable materials are expected to become competitive focal points in the new phase of industry development [12].

Core Viewpoint - Tengjing Technology (688195) announced a significant procurement order for YVO4 products worth 87.606 million yuan (excluding tax), which represents 19.78% of the company's revenue for the previous year, projected to achieve 445 million yuan in revenue for 2024 [2][3]. Group 1: Company Performance and Orders - The order received by Hefei Zhongbo Functional Materials Co., Ltd., a subsidiary of Tengjing Technology, is a routine operational order that does not require board or shareholder approval [3]. - If the order is successfully implemented, it is expected to have a positive impact on the company's operating performance [3]. - Tengjing Technology has accelerated the expansion of crystal material products for high-speed optical communication, indicating positive progress in customer orders [4]. Group 2: Market and Product Applications - YVO4, or Yttrium Vanadate, is a key material used in optical isolators, circulators, and polarizers, primarily applied in optical communication, fiber lasers, and quantum information research [4]. - The company has established partnerships with globally recognized optical module manufacturers, enhancing its position in the optical communication sector [4][6]. Group 3: Financial Performance - In Q3 2025, Tengjing Technology reported revenue of 162 million yuan, a year-on-year increase of 34.83%, and a net profit of 27.2137 million yuan, up 20.11% [6]. - For the first three quarters of 2025, the company achieved revenue of 425 million yuan, reflecting a year-on-year growth of 28.11%, with net profit increasing by 15% to 63.8025 million yuan [6]. Group 4: Industry Trends - The demand for high-speed optical communication components is driven by AI computing needs, contributing to market growth [6]. - The global OCS (Optical Circuit Switching) switch market is projected to grow at a compound annual growth rate (CAGR) of 49.80% from 2020 to 2024, with significant growth expected in the Chinese market [7].

Core Viewpoint - Credo Technology Group Holding Ltd. (NASDAQ:CRDO) experienced a significant decline of 13.44% in its stock price, closing at $129.75, as investors engaged in profit-taking after previous gains, despite a "buy" recommendation from Stifel at a target price of $160 [1][5]. Group 1: Stock Performance - On Tuesday, Credo Technology's stock fell by 13.44% to $129.75 per share due to profit-taking by investors [1]. - Stifel maintained a "buy" recommendation for Credo's stock, setting a price target of $160 [1][2]. Group 2: Product Launch and Technology - Credo launched its 800G HiWire ZeroFlap AECs, designed to provide reliable interconnects for AI backend networks [2]. - The HiWire ZF AECs enhance reach and signal integrity, eliminating soft link flaps and supporting lossless backend RDMA networks for AI clusters [3][4]. - Compared to legacy optics, Credo's HiWire AECs offer power savings of up to 14W per link and cost savings of up to $1,000 per GPU [5].