$SIVE: I Changed My Mind On Sivers

Gaetano · Gaetano · 21 июля 2026, 21:08 · ⏱ 4 мин чтения  | Читать в Substack ↗
Резюме
The author argues that the CW laser market for AI optics is segmenting into higher-complexity products (multi-wavelength arrays, high-power external sources) where Sivers' indium-phosphide technology and partnerships with Jabil and Ayar Labs position it well, contrary to his earlier concern that Sivers was too late to the cycle. This implies that while first-wave capacity from incumbents like Lumentum and Coherent may ease the initial shortage, advanced laser modules could remain tight, benefiting suppliers like Sivers in the next growth phase.
  • Lumentum and Coherent already ship CW lasers at scale and are ramping higher-power products; AAOI is building massive capacity; MACOM is in qualification; Sumitomo and Asian suppliers are also ramping.
  • Sivers is still working toward meaningful AI-related volume, leading to the author's initial concern that it would be late to the market.
  • The author's mistake was lumping all CW lasers: a standard pluggable laser differs from a 300–400mW external source, an eight- or sixteen-wavelength array, and a complete temperature-managed source.
  • Sivers has multiple paths: into 1.6T pluggables through Jabil, multi-wavelength optical I/O through Ayar Labs, and additional partnerships to turn lasers into complete external sources.
  • The author now believes Sivers may not be late to the next parts of the CW market, which involve more complex products rather than the first wave of standard lasers.
Время чтения 4 мин
Объём 4,542 симв.
Категория finance
Идеи
Gaetano Автор Substack, Гаэтано
The author's core thesis is that Sivers' InP technology and partnerships (Jabil, Ayar Labs) position it for the next-generation CW laser market, despite being late to the first wave. This is a bullish
The author's core thesis is that Sivers' InP technology and partnerships (Jabil, Ayar Labs) position it for the next-generation CW laser market, despite being late to the first wave. This is a bullish setup for the stock if the market shifts to higher-complexity lasers. Risk: Execution risk: Sivers still needs to achieve meaningful AI volume. Competition from incumbents with established capacity could limit pricing power.
Gaetano Автор Substack, Гаэтано
Lumentum is named as an incumbent already shipping CW lasers at scale and ramping higher-power products. This confirms its strong position in the current cycle, which could sustain revenue and margins
Lumentum is named as an incumbent already shipping CW lasers at scale and ramping higher-power products. This confirms its strong position in the current cycle, which could sustain revenue and margins even as the market evolves. Risk: If the market shifts rapidly to multi-wavelength external sources, Lumentum may need to invest further to stay competitive.
Gaetano Автор Substack, Гаэтано
Coherent is also named as an incumbent shipping CW lasers at scale with higher-power product ramps. Its established customer relationships and capacity give it a durable advantage in the near term.
Coherent is also named as an incumbent shipping CW lasers at scale with higher-power product ramps. Its established customer relationships and capacity give it a durable advantage in the near term. Risk: Similar to Lumentum, exposure to standard pluggable lasers may become commoditized if advanced products dominate.
Gaetano Автор Substack, Гаэтано
AAOI is building a massive amount of laser capacity and aims to become a major supplier of ultra-high-power lasers and complete external laser sources, indicating aggressive investment in the segment.
AAOI is building a massive amount of laser capacity and aims to become a major supplier of ultra-high-power lasers and complete external laser sources, indicating aggressive investment in the segment. This suggests potential market share gains. Risk: Massive capital spending could pressure margins if demand growth slows or if pricing competition intensifies.
Gaetano Автор Substack, Гаэтано
Jabil is identified as a partner for Sivers' entry into the 1.6T pluggable cycle, providing a channel to customers. This partnership enhances Sivers' go-to-market capability and could generate revenue
Jabil is identified as a partner for Sivers' entry into the 1.6T pluggable cycle, providing a channel to customers. This partnership enhances Sivers' go-to-market capability and could generate revenue for Jabil as well. Risk: Dependence on Sivers' laser qualification and volume ramp; Jabil's own margins in optical assembly may be low.
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This newsletter, published July 21, 2026, features Gaetano discussing SIVE, LITE, COHR, AAOI, JBL. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Gaetano  · Tickers: SIVE, LITE, COHR, AAOI, JBL