The article notes that Lumentum sold off after Broadcom's copper commentary and again on CPO timing fears, but the author believes the optical thesis remains strong and that many optical names should
The article notes that Lumentum sold off after Broadcom's copper commentary and again on CPO timing fears, but the author believes the optical thesis remains strong and that many optical names should not have sold off, implying Lumentum is oversold and presents an opportunity.
Risk: CPO delays could become permanent, or copper could extend further, reducing optical demand longer term.
Coherent (formerly II-VI) is mentioned alongside Lumentum as having sold off on CPO timing fears. The author argues that the market reaction was too blunt and that optical names like Coherent still be
Coherent (formerly II-VI) is mentioned alongside Lumentum as having sold off on CPO timing fears. The author argues that the market reaction was too blunt and that optical names like Coherent still benefit from pluggable runway, NPO pull-forward, and strong overall optical adoption, making the selloff a potential buying opportunity.
Risk: If CPO timeline moves even further right or if copper displaces more optical spend than expected, Coherent could face sustained headwinds.