Summary
The article argues that a single, unnamed photonics company is uniquely positioned to benefit from four simultaneous trends in the optical networking space: the persistence of copper, delays in co-packaged optics (CPO), the rise of near-packaged optics (NPO), and the emerging Scale-Across/DCI market. The author claims this company is still pre-inflection with a significant ramp expected in CY 2027, implying a major re-rating opportunity once the thesis materializes.
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•Copper is lasting longer than expected, delaying the optical transition in some areas.
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•Scale-up CPO (co-packaged optics) is further out than previously modeled, shifting focus to NPO alternatives.
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•NPO (near-packaged optics) is positioned as the next major technology to capture significant spending.
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•Scale-Across / DCI (data center interconnect) is described as a massive emerging market that will drive additional demand.