2025-11-10 03:34Summary of Conference Call on North American Optical Modules and Domestic Computing Chain Updates Industry Overview - The conference call focused on the North American optical module industry and the domestic computing chain, highlighting investment opportunities in the optical communication industry from 2026 to 2027, particularly for companies like Alibaba and Tencent [3][4][5]. Key Insights and Arguments - Investment Timing: Current low-budget conditions present a significant opportunity for investment in niche areas within the optical communication sector, with substantial flexibility across various segments [3][4]. - Market Sentiment: North American optical module manufacturers reported earnings that exceeded expectations, indicating strong market recognition of the optical module industry's trends [3][6]. - Performance of Key Companies: - Lumentum: Reported a significant increase in shipments of 100G eML, CW silicon photonics chips, and 200G eML, leading to a revenue forecast exceeding $600 million for the next quarter [6][10]. - Coherent: Achieved a quarter-over-quarter growth of approximately 10%, with expectations of strong demand and supply improvements accelerating data center business growth [3][6]. - Fabrinet: Surpassed revenue expectations due to growth in the telecom market and DCI business, with Amazon's advanced computing boards driving development [6][7]. Emerging Trends - AI and Communication Sector Outlook: Both domestic and international AI development trends are viewed positively, with major companies like Alibaba, Tencent, Google, AWS, and Meta expected to maintain robust capital expenditures [4][8]. - 1.6T Optical Module Demand: There is a notable increase in demand for 1.6T optical modules, with Lumentum and Coherent highlighting the need for 200G EML and CW lasers, driven by customer demand [4][10]. - Supply Chain Dynamics: The optical chip shortage has worsened, with Lumentum reporting a shortfall increasing from 20% to 25-30%, leading to anticipated price increases in 2026 and plans to boost production capacity by over 40% [10][11]. Market Challenges and Opportunities - Challenges: The optical chip market faces supply-demand imbalances, with significant shortages reported by major suppliers [11]. - Opportunities: Despite supply challenges, strong demand for optical chips presents growth opportunities for companies actively preparing to increase production, including Chinese manufacturers [11]. OCS and DCI Market Prospects - OCS Market: The OCS market is expected to see rapid growth, with orders primarily concentrated among overseas manufacturers like Coherent and Lumentum, projecting sales reaching $100 million by Q4 2026 [12][13]. - DCI Demand Growth: DCI demand has shown consistent quarter-over-quarter growth, with companies like DeKeLi expected to secure more orders as they expand production capacity [14]. Overall Market Sentiment - The overall sentiment remains optimistic for the optical module sector, with key trends such as the rise of 1.6T modules, optical chip shortages, and DCI demand being critical areas for investment [15]. The upcoming earnings reports, particularly from Nvidia, may further enhance market sentiment [15].