THE NEXT AI SHORTAGE IS PHOTONICS, LIGHTWAVE LOGIC (LWLG) IS YOUR ENTRY

Here is a quick breakdown of photonics for those who don't understand what it does or what role it plays in AI infrastructure. “Photonics is the science and technology of generating, controlling, and detecting light (photons), acting as the light-based equivalent of electronics. It uses lasers, optics, and fiber optics to manipulate information and energy, powering technologies like high-speed internet, medical lasers, displays, and sensors.” ansys.com It essentially is one of the fastest transportation methods of data in the world at the moment. Here is where the fun part comes in. There is currently a 70% supply gap in the world’s photonics demand. Production capacity currently sits roughly around 600,000 units per year while the demand is at 2 million units per year and ever increasing. The most recent estimates I have seen are 20 million units by 2027. This is akin to a shortage we have seen recently in memory. Look at Sandisk, Western Digital, and a lot of the big memory chip players. The returns since the start of the year are astronomical. While some photonics names like Lumentum and other blue chips have already seen their share prices dramatically increase due to the shortage, I believe LWLG (Lightwave Logic) is a key player in the photonics industry that still has an attractive share price. At the time of me writing this it is trading around $10.30 on a pretty sizable jump since the market opened. Additionally, it has run up over 100% in a short period of time. However, this shortage can not be overlooked. I'm sure many of you thought Sandisk would slow down or the other memory names, but they didn’t. The fact about shortages is that those who can supply are able to name their price with much more bargaining power than in equilibrium. Small companies like LWLG, who supply integral parts to the photonics industry are going to receive that massive increase in share price over the next few months. I can do a much more in depth DD of LWLG, but I thought I would start this off as more of a discussion. I am confident we could see something like 50$ a share by summer. All the Capex from these large players goes largely towards AI infrastructure. If there is a shortage in a key component of that infrastructure, who benefits? Those with the supply. LWLG is a key player in that supply and will receive the gains to back that up.