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@Tenbagger2024 I like both of them and own them as well. However, I would classify them somewhat differently from the three stocks mentioned in the post.
Fabrinet $FN is, in my view, more of a “pick-and-shovel” manufacturer riding the photonics wave: it has less proprietary laser/CPO technology, but FN benefits very directly from rising unit volumes in optical modules and high-speed datacom.
ASE Technology $ASX operates one level deeper in advanced packaging and system integration. AI is the bigger driver there; photonics and CPO are additional parts of the story.
AAOI, LITE, and COHR, on the other hand, are, in my view, closer to the actual optical bottleneck: lasers, InP, transceivers, and CPO. For that reason, and because they had just reported earnings, they took center stage in the post above.
Bottom line: I also find FN and ASX attractive, but more as broader beneficiaries of economies of scale rather than as focused “photonics bottleneck” plays.
Fabrinet $FN is, in my view, more of a “pick-and-shovel” manufacturer riding the photonics wave: it has less proprietary laser/CPO technology, but FN benefits very directly from rising unit volumes in optical modules and high-speed datacom.
ASE Technology $ASX operates one level deeper in advanced packaging and system integration. AI is the bigger driver there; photonics and CPO are additional parts of the story.
AAOI, LITE, and COHR, on the other hand, are, in my view, closer to the actual optical bottleneck: lasers, InP, transceivers, and CPO. For that reason, and because they had just reported earnings, they took center stage in the post above.
Bottom line: I also find FN and ASX attractive, but more as broader beneficiaries of economies of scale rather than as focused “photonics bottleneck” plays.
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•@ScaleLimits Thank you, my dear
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