Photonics Is Where AI Infrastructure Meets Physical Limits

Copper interconnects are reaching practical limits inside high-performance data centers, which is why optical connectivity is moving closer to the core of the AI stack.

Photonics enables faster data transfer, lower power consumption, and longer-distance connectivity across GPUs, switches, racks, and data centers.

$NVDA — Nvidia $NVDA sets the optical roadmap for AI factories. 200G-per-lane InfiniBand CPO switches are expected from 2026, while Spectrum-X Ethernet Photonics pushes optics closer to switching silicon.

$AVGO — Broadcom $AVGO is the Ethernet silicon architect. Tomahawk 6 delivers 102.4 Tbps switching, while Taurus brings 400G/lane optical DSP for 1.6T links and a path toward 3.2T networks.

$CSCO — Cisco $CSCO owns a full networking-plus-optics stack through Silicon One and Acacia. Recent AI infrastructure demand was roughly 60% systems and 40% optics, with 1.6T OSFP and 800G LPO now launched.

$COHR — Coherent $COHR supplies lasers, 800G/1.6T transceivers, coherent modules, and OCS. Six-inch InP lines in Texas and Sweden can produce 4x more chips than older 3-inch wafers at lower cost.

$LITE — Lumentum $LITE is a laser capacity gatekeeper. EML shipments hit records, OCS backlog moved above $400M, and ultra-high-power lasers are being built for CPO and optical scale-up systems.

$AAOI — Applied Optoelectronics $AAOI is a vertically integrated optical module supplier. It exited 2025 near 90K monthly 800G capacity and targets 500K+ monthly 800G/1.6T units by end-2026.

$CRDO — Credo $CRDO bridges copper and optics. ZeroFlap optics are already shipping to TensorWave, while Active LED Cables use MicroLEDs to extend reach up to 30 meters with lower power.

$ALAB — Astera Labs $ALAB is moving from PCIe/CXL retimers into optical engines. XScale Photonics adds chip-to-chip optical IP, while Amazon’s warrant agreement includes optical engine solutions.

$MRVL — Marvell $MRVL is the optical DSP engine. 1.6T entered production, 400G-per-lane tech has been demonstrated, and Celestial AI adds Photonic Fabric for future scale-up CPO networks.

$MTSI — MACOM $MTSI sells the analog front-end inside optical links: TIAs, drivers, photodetectors, equalizers, and CW lasers. 200G photodetectors support 800G and 1.6T module ramps.

$TSM — TSMC $TSM is the advanced manufacturing layer behind AI photonics. CoWoS, SOIC, and future CoPoS enable larger accelerators, HBM systems, and denser chip-to-optical packaging.

$GFS — GlobalFoundries $GFS is a silicon photonics foundry. SiPh revenue passed $200M in 2025, Advanced Micro Foundry adds capacity, and a CLO platform win targets CPO for AI scale-up networks.

$FN — Fabrinet $FN is the outsourced optical assembly floor. It builds DCI modules, datacom transceivers, CPO pilots, and OCS products while staying neutral with no competing in-house modules.

$TSEM — Tower Semiconductor $TSEM is a SiPho and SiGe foundry play. Q4 SiPho reached a $380M annualized run rate, and management says Tower is the majority supplier of 1.6T silicon PICs.

$POET — POET Technologies $POET integrates electronics and photonics on one interposer. POET Infinity secured a $5M+ production order, with management targeting 30K+ optical engines shipped in 2026.

$AEHR — Aehr Test Systems $AEHR tests the reliability layer. FOX-XP systems burn in silicon photonics wafers before packaging, and effective backlog reached a record $50.9M after new photonics orders.

$AXTI — AXT $AXTI supplies InP substrates for EML lasers and silicon-photonics transceivers. InP backlog is above $60M, capacity rose 25%, and management plans to double capacity by end-2026.

$SOI(.PA) — Soitec $SOI(.PA) supplies Photonics-SOI wafers for silicon photonics. More than five customers are engaged, while Smart Cut supports 200mm/300mm wafers and LNOI beyond 1.6T.

$IQE.L — IQE $IQE grows epitaxial layers for data-center lasers. Tier 1 AI data-center design wins and a first six-inch foundry platform position it upstream in InP, VCSEL, and silicon photonics.

$GLW — Corning $GLW supplies the fiber, cable, and dense connectivity layer. A multi-year Meta deal worth up to $6B anchors AI data-center fiber demand and U.S.-origin optical capacity.